108th Meeting of State Level Bankers’ Committee (Punjab) Old Meetings/SLBC Old data/Slbc108... · 3 ADWDRS – Cut off date for payment of first installment by “other farmers”

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The 108th meeting of State Level Bankers’ Committee (Punjab) would

be held on 13.08.2009 at 11.00 A.M. at Hotel Mount View, Sector 10, Chandigarh. The following issues would be taken up for discussions in the meeting:-

Item No. 1 Confirmation of minutes of 107th Meeting of State Level Bankers' Committee (Punjab) held on 21st April,

2009

Last Meeting of SLBC 107th

Held On 21.04.2009

Minutes Circulated 30.04.2009

Comments Received No

As such, the house may confirm the circulated minutes.

Item No. 2 Status of Important Issues Flagged in 107th Meeting of

SLBC (Pb)

The latest status of important issues flagged in 107th meeting of SLBC is given below;

Issue Action Taken/ Latest Status

Special Package of IBA on MSE,

Housing & Auto Sectors

It was resolved that banks may

continue to give focused attention in

implementing the IBA package.

The special monthly meetings

are being convened on regular

basis.

The monthly progress achieved

by banks is being submitted to

Ministry of Finance,

Government of India, RBI.

108th Meeting of State Level Bankers’

Committee (Punjab)

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The recommendations of Dr. KC

Chakrabarty report were placed

in the agenda of monthly

meetings and also in the 1st

meeting of Steering Committee

and the concerned departments

of the State Government have

been requested to initiate

necessary steps to implement

the recommendations on which

the action lies with the State

Government.

As directed the details of MSME

Care Centers has been posted

on the independent website of

SLBC www.punjabslbc.org.in.

The information in this regard

has been sent to Ministry of

Finance, Government of India.

Fresh Lending Under ADWDRS

It was observed that the progress

achieved by cooperative banks in

providing fresh loans to the farmers

under the scheme was dismally low

(2%). The controlling head of Punjab

State cooperative Bank & PADB were

requested to make all out efforts to

provide fresh loans to eligible farmers

under the scheme.

The matter was taken up with the

controlling heads of Punjab State

Cooperative Bank & PADB to initiate

steps for covering all eligible farmers

under the scheme.

The controlling heads of other banks

were also requested to provide fresh

loans to all the eligible farmers under

the scheme.

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ADWDRS – Cut off date for

payment of first installment by

“other farmers”

RBI had extended the due date of

repayment of first installment by

“other farmer” under ADWDRS from

30th September 2008 to March 31st,

2009. The dates of deposit of second

& third installment remain unchanged

at March 31st & June 30th 2009.

It was observed that on account of

delayed harvesting of Rabi Crop & Lok

Sabha election round the corner, the

farmers were not coming forward to

deposit their share. Further cut off

date for acceptance of grievances

from the farmers has been extended

up to 31st July, 2009.

On account of these it was suggested

that the last date of payment of

second installment may be extended

from 31.3.2009 to 31.7.2009 and that

of third installment may be extended

from 30.6.2009 to 30.9.2009.

The suggestion was referred to

Ministry of Finance, Government of

India for favourable consideration.

The Ministry of Finance, Government

of India vide letter no/

F.No.3/9/2008-AC dated 12.06.2009

has conveyed that those “Other

Farmers” which could not deposit the

1st & 2nd installments of their share on

due dates, may deposit all three

installments together as a single

installment on or before 30.06.2009.

Further, as per Union Budget 2009-10

proposal, the due date for deposit of

75% of the share of “Other Farmers”

has been extended by another 6

months i.e. upto 31.12.2009.

Incentive for quicker Adoption of

Electronic Benefit Transfer (EBT)

for Government Scheme

On the issue of implementing EBT for

payments under NREGA, social

security benefits through bank

accounts having bio metric access, it

The feedback available from

Directorate of Institutional Finance &

Banking reveals that they had taken

up the matter with Department of

Rural Development (NREGA) and

Department of Social Security (other

schemes) and working out the cost

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was apprised that payment of 2% of

transaction fee to the transacting

banks may be negotiated by banks

with the State Government.

benefit of the proposal.

The Principal Secretary Finance,

Government of Punjab convened a

meeting of select banks (PNB, SBI,

SBOP, PSB, OBC, Uco Bank, HDFC

Bank & Axis Bank) on 24th July 2009.

Financial Literacy cum Credit

Counseling Centers _ Model

Scheme

It was resolved that the FLCCs

supported by banks/ proposed to be

supported by banks would have to be

in conformity with the Model Scheme,

as contained in RBI circular dated 4th

February, 2009.

The controlling heads of Lead Banks,

which have established such centers

in their respective Lead District were

requested to ensure that the

functioning of the centers is in

conformity with the Model guidelines

issued by RBI.

Rural Self Employment Training

Institutes – RSETIs

It was resolved that to begin with the

Department of Rural Development

may start functioning of RSETIs from

the existing buildings of some

Department of the State Government.

Further, the Department of Rural

Development was also requested to

initiate necessary steps for allocation

of land for setting up of RSETIs.

The feedback available from The

Department of Rural Development &

Lead District Managers reveals that

District Administration Ferozepur has

allowed OBC to use 1 acre land for

setting up of RSETI, out of 10 acres

allocated at village Ratoul Bet for

establishing Farmers’ Training Center.

OBC has moved the case of getting

the certificate of change of land use

from appropriate authority. Further,

OBC has entered into MOU with

National Institute of Rural

Development (NIRD), Hyderabad. The

first installment of Rs. 48.95 lakh has

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been released by NIRD for setting up

of RSETI.

Further, State Government also

proposes to allocate land for setting

up of RSETI as per the following;

At village Harsha Cheena,

Amritsar,

At Village Kalyan Sukha,

Bathinda,

At village Duneke, Moga

At village Bassi Muda,

Hoshiarpur

At village Bhulla Chak,

Gurdaspur,

At village Alowal, Jalandhar

At village Koli Majra, Mohali,

At village Badshah, Kapurthala,

At Block Samiti, Tarn Taran,

At village Kot Bhai, Muktsar,

At village Ghowda, Sangrur,

At village Gujarpur, district

Nawanshahr,

Moreover, The Department of Rural

Development has also apprised that,

to begin with, it has been decided to

start RSETI at the following districts;

At BDPO Office, Harsha

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Cheena, Amritsar,

At Working Women Hostel, Red

Cross, Bathinda,

At ITI Mansa,

At LDM’s office, Ludhiana,

At ITI Patiala,

At ITI Ropar,

At BDPO Office, Majri, Mohali,

At ITI Muktsar.

The banks having lead responsibility

in the State are ready to support the

RSETIs in their respective Lead

Districts.

Recommendations of Sub Group

of SLBC on CGTMSE

To further enhance the progress

under Credit Guarantee Scheme, the

recommendations of Sub Group of

SLBC on CGTMSE were approved by

SLBC. It was resolved that the same

may be forwarded to RBI.

The Convener Bank forwarded the

approved recommendations to RBI,

Chandigarh for their further necessary

action.

It has been mentioned in RBI circular

dated May 4, 2009 on Credit Delivery

to Micro & Small Enterprises Sector

(Dr. KC Chakrabarty Report) that

several recommendations have been

received regarding CGTMSE Scheme.

These recommendations will be

considered by the Standing

Committee on Flow of Institutional

Credit to MSEs.

This is for information.

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Item No. 3 Special Package of IBA on MSE, Housing and Auto

sectors- Special & monthly meetings of SLBC

In the context of the global developments and the knock on effects in the domestic credit markets, RBI has taken several measures to enhance credit delivery to the employment intensive Micro & Small Enterprises (MSE)

Sector. Further, as per RBI Circular RPCD.SME. & NFS.BC.No.06.02.31 (P)/2008-09 dated 16.12.2008, with a view to address proactively the problems faced by MSE sector, it was advised that SLBC conveners may

organize special meeting of SLBC, where representatives of MSE sector should be invited to facilitate the exchange of views and arrive at concrete measures

in the interest of the sector and the banking system. The details of the RBI restructuring guidelines can be explained and disseminated in these meetings.

The Convener Bank organized a special meeting of SLBC on MSE on 12.01.2009 at Amritsar which was chaired by Dr. K.C. Chakrabarty, the

then CMD, PNB and Madam Usha Thorat, Dy. Governor, RBI was the Chief Guest.

Further, the Ministry of Finance, Govt. of India, vide its letter no. F.21/01/09-Dev dated 12.01.2009 & 16.01.2009 advised the SLBC convener banks to convene Special Monthly Meetings on MSE between 5th & 12th of

every month.

As such the Convener bank organized such meetings as per the detail below;

Meeting Date

1st Special Monthly Meeting of SLBC on MSE 11.02.209

2nd Special Monthly Meeting of SLBC on MSE 10.03.2009

107th meeting of SLBC & 3rd Special Monthly Meeting

of SLBC on MSE

21.04.2009

4th Special Monthly Meeting of SLBC on MSE 15.05.2009

5th Special Monthly Meeting of SLBC on MSE 09.06.2009

The Ministry of Finance, GOI, vide its letter dated 04.03.2009 has also

advised to undertake regular review of restructuring of MSME accounts at the district level jointly by DLRC Convener (LDM) & GM, DIC. They have also

desired the district wise position of such accounts by 30th of every month.

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The Convener bank vide its letter dated 31.03.2009 has requested Department of Industries to pass on these guidelines and also requested

LDMs to coordinate with DICs to ensure restructuring of all the eligible cases.

A. PROGRESS

The summary of the progress achieved by banks up to June 2009 is given as under:

i) Relief to MSE – Progress up to June 2009

(Amt. in Crore)

Particulars During June 2009

Cumulative upto June 2009

A/c Amt. A/c Amt.

Sanctioning of Working

Capital Loans (New)

1148 216 8224 2114

Sanctioning of Incremental

Working Capital Loans (Existing Units)

524 111 2780 875

Restructuring of MSME a/cs 23 11 5184 811

Sanctioning of Loans for purchase of Gen Sets on

Soft terms

2 0.10 4 0.15

(The bank-wise position is available on Annexure No I).

Highlights:

The banks have sanctioned 1148 fresh working capital loans amounting to Rs. 216 crore during the month of June 2009, taking the cumulative

progress to 8224 Accounts involving an amount of Rs. 2114 crore. The banks have also sanctioned enhancements in the existing 524

accounts to the tune of Rs. 111 crore during June 2009, thus showing cumulative position as 2780 accounts with an amount of Rs. 875 crore.

The banks have also restructured 23 accounts for an amount of Rs. 11

crore during June 2009, thus showing a cumulative position of 5184 accounts for an amount of Rs. 811 crore since announcement of package.

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The House may review the progress.

ii) Relief to MSE – Month wise comparative progress

(Amt. in Crore)

Particulars During May 2009

During June 2009

A/c Amt. A/c Amt.

Sanctioning of Working Capital Loans (New)

1370

214

1148 (-16.2%)

216 (1%)

Sanctioning of Incremental Working Capital Loans

(Existing Units)

654

109

524 (-19.9%)

111 (1.8%)

Restructuring of MSME a/cs 8 5 23

(187.5%)

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(120%) (The bank-wise position is available on Annexure No II).

Highlights:

During June 2009, the banks have sanctioned fresh working capital

loans to 1148 units amounting to Rs. 216 crore as against loans to 1370 units amounting to Rs. 214 crore in May 2009.

During June 2009, the banks have also enhanced existing working capital limits of 524 units amounting to Rs. 111 crore, as against 654

units to the extent of Rs. 109 crore during last month i.e. May 2009. During the month of June 2009, banks have restructured loans of 23

MSME accounts amounting to Rs. 11 crore as against 8 cases to the extent of Rs. 5 crore during May 2009. (RBI has allowed a special

incentive for accounts where restructuring has been taken up before 31.3.2009 and implemented within 120 days thereof).


iii) Sanctioning of Housing & Auto Loans – Progress upto

June 2009

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(Amt. in Crore)

Particulars During June

2009

Cumulative upto

June 2009

A/c Amt. A/c Amt.

Loans upto Rs.5 lac 1382 42 6009 301

Loans above Rs. 5 lac and

upto Rs.20 lac

686 59 4485 563

Loans above Rs.20 lac 238 97 554 225

Total Housing Loans 2306 198 11048 1089

Auto loans 2028 75 11308 655

(The bank-wise position is available on Annexure No. III).

Highlights:

In the category of loans upto Rs. Rs. 5 lakh, banks have sanctioned

1382 Housing Loans amounting to Rs. 42 crore during June 2009 making the cumulative progress to 6009 accounts with an amount of Rs. 301 Crore.

Similarly, the banks have sanctioned 686 Housing Loans above Rs. 5

Lakh to 20 Lakh amounting to Rs. 59 crore during June 2009 making the cumulative position as 4485 accounts amounting to Rs. 563 crore.

So far as the Housing Loans above Rs. 20 Lakh are concerned, banks

have sanctioned 238 accounts for Rs. 97 crore, taking the cumulative no. of accounts to 554 with an amount of Rs. 225 crore.

Under Auto Loans, the banks have sanctioned 2028 cases amounting to Rs. 75 crore during June 2009. The cumulative position since

announcement of the package comes to 11308 cases, involving an amount of Rs. 655 crore.


iv) Sanctioning of Housing & Auto Loans – Month wise comparative progress

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(Amt. in Crore)

Particulars During May

2009

During June

2009

A/c Amt. A/c Amt.

Loans upto Rs.5 lac 616

19 (-14%)

1382 (124.4%)

42 (121.1%)

Loans above Rs. 5 lac and upto Rs.20 lac

611

54

686 (12.3%)

59 (9.3%)

Loans above Rs.20 lac 40

10 238

(495%)

97

(870%)

Auto loans 1571

50

2028

(29.1%)

75

(50%)

(The bank-wise position is available on Annexure No. IV).

Highlights:

During the month of June 20009, the banks have sanctioned 1382 housing loans up to Rs. 5 lakh amounting to Rs. 42 crore, as against

616 loans to the extent of Rs. 19 crore during last month i.e. May 2009.

Similarly, during the month of June 2009, the banks have sanctioned

686 housing loans in the range of above Rs. 5 lakh & upto Rs. 20 lakh amounting to Rs. 59 crore, as against 611 loans to the extent of Rs. 54 crore during last month i.e. May 2009.

In the category of loans above Rs. 20 lakh during the month of June

2009, the banks have sanctioned 238 loans amounting to Rs. 97 crore, as against 40 loans to the extent of Rs. 10 crore during May 2009.

Likewise, during the month of June 2009, the banks have sanctioned

2028 auto loans amounting to Rs. 75 crore as against 1571 loans amounting to Rs. 50 crore during last month i.e. May 2009.


B. List of MSME Care Centers posted on Portal of SLBC

For quick redressal of grievances of MSMEs, the Public Sector Banks have set up “Regional Care Centers”. The details of these centers have been posted by banks on their Web Site. The office of Development Commissioner,

Ministry of Micro, Small & Medium Enterprises, Government of India has,

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however, felt that the information would be useful to MSMEs if consolidated position for all the banks in each State is available at one place. The SLBC

Convener for Rajasthan (Bank of Baroda) has already consolidated the information for the entire State and posted the same on their Web Site. It was

further desired that necessary action may be taken to consolidate the information and post the same on the SLBC/ Bank Web Site for each State. The Convener Bank, as such has obtained the list of such centers from

controlling heads of banks in Punjab and after consolidation, the same has been placed on the independent Web Site of SLBC (Pb) i.e. www.punjabslbc.org.in. Now the MSME units & their associations as well

public in general can view the same, which will help in redressal of their grievances, if any.

The Convener Bank has requested the Controlling Heads of

Banks to further strengthen their MSME Regional Care Centers so

that issues, if any, raised are redressed quickly & to the satisfaction of the entrepreneur.

C. Special Interactive Meeting of Members of Mohali Industries Association with Banks

During the course of 5th special monthly meeting of SLBC (Pb) on MSME

held on 9th June 2009 the President of Mohali Industries Association

mentioned that its members have certain issues to be discussed with banks. As such, it was resolved that a special interactive meeting of members of

Mohali Industries Association & select bank i.e. PNB, SBI, SBOP, OBC, Canara Bank & PSB may be organized. Accordingly, a special interactive meeting was convened on 19.6.2009 at MIA Bhawan, Mohali. The meeting

was chaired by Dr. J. Sadakkadulla, Regional Director, Reserve Bank of India. Shri N.C. Jain, Field General Manager, PNB & Convener SLBC besides representatives of SBI, SBOP, OBC, Canara Bank & PSB were also present.

Some of the important issues raised & response given their against is as

follows;

Issue Raised Response

As per the stimulus package, need based 20% adhoc facility is to be

granted repayable in one year with moratorium period of six months. It was desired that the repayment

The need based adhoc WCDL up to 20% is meant for meeting the

emergent needs of the unit on temporary basis, which have arisen on account of economic melt down.

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period of adhoc limits should be extended from one year to 4 years.

Further, as per the package, other relief measures such as reduction in margin on receivables up to 6 months

are to be reckoned for book debt financing, relaxed margins on LC/LG, re-schedulement of Term Loan

obligation, second restructuring etc. have been provided.

Annual service fee under CGTMSE levied should be on balance as at last March ending and not on original

sanctioned amount. Further, the one time guarantee fee is also on the

higher side.

These issues were discussed in special meeting of SLBC (Pb) held on 12th January 2009 and a Sub

Committee of banks & industry association was constituted. The Sub

Group deliberated on various issues involved in making CGTMSE Scheme more industry friendly. The SLBC in

its 107th meeting approved the recommendations of the Sub Group, including reduction of guarantee fee /

annual service fee and have been forwarded to RBI for consideration.

Banks are levying various charges in to the accounts of the entrepreneurs which are on the higher side and

some times not disclosed. Moreover, the same are not intimated in time

due to which, some times the cheque is bounced.

It was apprised that as suggested by Madam Usha Thorat, DG, RBI during special meeting of SLBC on

12.01.2009, a sub committee of RBI is already working on ensuring

transparency of charges. However, all the bankers present in the meeting were asked to intimate the borrower

about levy of any charges in the account and to send the statement of

a/c in time.

The banks have evolved a new system of processing of loan

applications, which is causing delay in sanctioning of loans.

The banks have evolved CPC system for processing of loans to bring

further improvement in the processing of loan applications and once it is strengthened by banks it

will take care of delays, if any.

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The other bank specific issues raised were resolved there & then.

Item No. 4 Credit Delivery to Micro & Small Enterprises (MSE) Sector- Recommendations of Dr. K.C. Chakrabarty Report

To look into the problems being faced by MSE sector, particularly with respect to rehabilitation of potentially viable sick units, the Reserve Bank of

India had constituted a Working Group under the Chairmanship of Dr. K.C. Chakrabarty, the then Chairman & Managing Director, Punjab National Bank. The Group has submitted its report to Reserve Bank of India covering

comprehensively the entire gamut of issues & problems (credit & non-credit related) confronting the sector. The rec ommendations made by the group

pertain to Government of India, State Governments & Commercial Banks. The issue of implementation of recommendations, particularly

pertaining to State Government was discussed in special monthly meetings of SLBC on MSME and the Department of Industries, Government of Punjab was requested to look into all the recommendation for implementation in the

State. As Convener of SLBC, we have taken up vide letter dated 28th May 2009 with Department of Industries, Govt. of Punjab & Directorate of I F & B

(Pb) for taking suitable steps to implement the recommendations on which the action is required at the level of State Government.

During 1st meeting of Steering Committee held on 19th June 2009, the issue of action taken by concerned department of State Government was deliberated and the summary of the same is as follows;

S.N. Recommendations Latest Status

1 Creation of a Central Registry by the State Governments for

registration of charges of all banks and other lending institutions in respective of all

moveable and immovable properties of borrowers incorporated a proprietorship,

partnership, cooperative society, trust, company or in any other

form.

The matter pertains to Revenue Department.

The Directorate of IF & B (Pb) was requested to take up the

issue with Revenue Department.

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2 Stamp duty is payable on

assignment of actionable claims. Modification in these provisions for factors by way of exemption

of prescribing a ceiling would give impetus to this activity.

The matter pertains to Revenue

Department. The Directorate of IF & B (Pb)

was requested to take up the issue with Revenue Department.

3. A scheme for utilizing specified NGOs to provide training services

to tiny micro enterprises may be considered.

A number of NGOs have been registered with Department of

Industries & KVIC and they are being utilized for providing training to entrepreneurs

including belonging to tiny & micro enterprises & under Rajiv

Gandhi Mitra Yojna.

4. Each State Govt. may also have a separate Ministry for MSME. In

addition, the State Governments may also have long term and

short term policy for development/promotion of MSME Sector.

The issue would be taken with the concerned quarters of the

State Government.

5. State Govt. should provide preferential treatment to MSMEs in providing uninterrupted power

supply. In case the same is not possible the State Govt. may provide back ended subsidy on

loans taken for purchase of DG Sets.

The issue of providing uninterrupted power supply pertains to Punjab State

Electricity Board. Earlier subsidy for loans taken for purchase of DG sets was available which was

discontinued. The State Government is coming out with

the New Industrial Policy and the matter has been referred to the concerned official for

consideration.

6. The State Governments may be encouraged to provide land at 50% of normal rate for setting up

of industrial estates exclusively

The State Government is coming out with New Industrial Policy and the issue has been referred

to the concerned official for

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for MSMEs. Further, 50% subsidy may be provided on capital cost

of common facilities like effluent treatment plant, power plant etc.

consideration.

7. The need for obtaining any

clearance except registration with DIC for individual SME units set up in Industrial Estates developed

by State Industrial Development Corporations or DICs or approved

Industrial Estates developed by private entrepreneurs for SMEs may not be considered necessary

as they are developed as per the approved layouts. Further the

defunct Industrial Estates may be made active once again by putting in place the complete

infrastructure putting national resources to good use.

The State Government is coming

out with New Industrial Policy and the issue has been referred to the concerned official for

consideration.

8. The niche industry or the

activities having good concentration in the area may be identified by banks and DICs. The

model cost of the project for different sizes of commonly prevailing industry and overall

viability of the activity may be assessed by a committee

comprising of 2-3 major banks of the district under the aegis of lead banks so as to obviate the

need of any expert/professional to prepare TEV study in individual

cases. The exercise may be carried out periodically after considering price of the

machinery and other fixed assets required, sources of raw material, technical expertise, skilled labour

The Department of Industries

has referred the matter to all General Managers of DICs in the State. Similarly, Convener Bank

has also requested all LDMs in the State to coordinate with GM DIC, set up the committee &

accomplish the job.

After detailed discussions it was resolved that Model Cost of Project for Rice Sheller units of

different capacities, which has concentration in & around

Sangrur district may be assessed by a committee under aegis of Lead Bank (LDM - SBOP)

comprising GM DIC, PNB, SBI & PSB.

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availability and access to market. The LDM Sangrur may coordinate and send the Model Cost of

Project so approved to SLBC at the earliest.

The Convener Bank has requested Directorate of IF & B (Pb) to

take up with Department of Revenue, Government of Punjab for

initiating suitable steps on first two recommendations. Further, Director Industries & Commerce, Government of Punjab has also

been requested to get implemented other recommendations. Moreover, controlling head of SBOP, having lead responsibility in Sangrur district as well as LDM Sangrur have also been requested to

get assessed the Model Cost of Project for Rice Shellers units of various capacities.

Item No. 5 Agriculture Debt Waiver & Debt Relief Scheme 2008 – Fresh Lending

5.I Fresh Lending – Progress up to March 2009

During the meetings of SLBC it was observed that the ultimate objective of the Debt Waiver & Debt Relief Scheme is to provide fresh loan to the

distressed farmers so that they can restart their farming/economic activity.

The summary of the same up to March 2009 is given below;

(Amount Rs. in Lakh)

Agency Crystallization of Claims Under Waiver & Relief

Fresh Loans Disbursed to beneficiaries of Waiver Relief

Accounts Amount Accounts Amount

Public Sector Banks 142693 46935 24300

(17%)

18612

(40%)

Private Sector Banks 1524 928 1 5

RRBs 8238 3055 2151

(26%)

3051

(100%)

Cooperative Banks 202667 53192 24689

(13%)

1507

(3%)

Total 355122 104110 51141

(14%)

23175

(22%)

(Bank wise information is as per Annexure V)

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Observations

Banks in Punjab have provided fresh credit to the extent of Rs. 23175

lakh, which is 22% of total waiver & relief provided, covering 51141 accounts i.e. 14% of farmers benefited under the scheme.

The Public Sector Banks have provided fresh loans to the extent of Rs. 18612 lakh which is 40% of the amount of waiver & relief covering

17% of farmers under the scheme.

RRBs have provided fresh loans to the tune of 100% of the amount

waiver & relief to 26% of farmers covered under the scheme.

The cooperative banks have given fresh loans amounting to the extent

of 3% of the amount of waiver & relief covering 13% of the farmers under the scheme.

The Controlling Heads of Banks are requested to ensure that fresh loans are disbursed to all the farmers who had received the

benefit of the Debt Waiver.

5.II Cut off date for acceptance of Grievances from Farmers Covered under the Scheme

The Ministry of Finance, GOI, vide its letter dated 2.04.2009 has

informed its decision that 31st July, 2009 will be the last date for receiving the grievances by the implementing agencies. They have also desired that this decision may be given wide publicity so that farmers can submit their

grievances, if any for redressal before the said cut-off date.

The Controlling heads of banks and LDMs are requested to take suitable steps in this regard and forward the final position about the grievances received & disposed of up to 31st July 2009.

5.III ADWDR Scheme 2008 – Prudential Norms on Income recognition, Asset Classification, Provisioning and Capital

Adequacy

Reserve Bank of India vide circular DBOD.No.BP.BC.112/21.04.048/2008-09 dated 5th March 2009 had since decided to extend the last date of repayment of first installment by the “Other

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Farmers” under ADWDR Scheme from September 30, 2008 to March 31, 2009. The dates of payment of second and third installments remain

unchanged at March 31, 2009 and June 30, 2009. It was also clarified that the additional period of one month from the pre-specified due dates, permitted to

the farmers eligible under the scheme, for paying their share of the settlement, without effecting the standard asset classification status of the relevant account shall be available only for the first two installments viz. those due on March 31,

2009. In 107th meeting of SLBC held on 21st April 2009, it was observed that

there had been untimely rain in the State of Punjab due to which the harvesting of Rabi Crop has been delayed. Consequently, there would be delay in receipt

of payments by farmers. It was further informed that there are Lok Sabha Elections also on account of which the farmers are not coming forward to deposit their share. It was suggested that due date for deposit of 2nd

installment and 3rd installment may be extended from 31.3.2009 & 30.6.2009 to 31.7.2009 & 30.9.2009 respectively. One of the representative of the banks also opined that since the cut - off date for acceptance of grievances from

farmers is 31.07.2009, the suggestion for extending the due date for 2nd installment up to 31.7.2009 is justified.

As such, the Convener Bank took up with Ministry of Finance,

Government of India for considering the extension of date for payment of

installments by the “Other” farmers.

The Department of Financial Services, Ministry of Finance, Government of India vide letter F. No. 3/9/2008 – AC dated 12th June, 2009 has conveyed that those “Other Farmers” which could not deposit the 1st & 2nd installment of

their share on due dates, may deposit all three installments together as a single installment on or before 30.6.2009, which will make them eligible for debt relief of 25% from Government of India. The banks will not charge any

interest on the eligible amount till 30.6.2009. The banks/lending institutions are allowed to receive less than 75% of eligible amount under OTS provided

the banks/lending institutions bear the difference themselves and do not claim the same either from Government or from the farmer. The Government will pay only 25% of actual eligible amount under debt relief.

The Convener Bank vide letter dated 20th June 2009 has conveyed this

decision of Ministry of Finance, Government of India to all controlling heads of

banks in the State for implementation.

20

Extension of Period for Payment - Union Budget 2009-10

The Government of India in Union Budget 2009-10 has further extended the time for other farmers to pay 75% of their overdues

under Debt Waiver & Debt Relief Scheme from 30th June to 31st December 2009.

Item No. 6 Second Phase of 100% Financial Inclusion 6.I) Use of IT enabled “Business Correspondent Business

Facilitators” Model in Process of 100% Financial Inclusion

After the completion of first phase of 100% Financial Inclusion by

providing basic banking services to all rural households in the State by either opening of deposit accounts including “No Frills” accounts or/and providing credit facility including under General credit Card scheme, it was resolved by

SLBC that to provide doorstep banking to the rural masses, the banks may undertake use of IT enabled Business Correspondent & Business Facilitator (BC & BF) Model.

Accordingly, the banks like PNB, OBC, SBOP & SBI have initiated the

process of providing Bio Metric cards in identified villages and the summary of the latest progress is given below:

PUNJAB NATIONAL BANK- RURAL

Sr. No.

Particulars PNB (Fatehgarh

Sahib)

PNB (TaranTarn)

PNB (Muktsar)

1. Number of villages covered 15 30 13

2. Number of households in these villages

4450 10358 7167

3. Number of accounts opened 5031 3838 4922

4. Amount of deposit collected 1429733 15720 42855

5. Number of Bio Metric Cards issued

4987 1024 2257

6. Whether transactions in Bio Metric Cards started

Yes

Yes

Yes

7. If yes to 6 above, number

of transactions held Debit 1791

Credit 11083

Debit 27

Credit 145

Debit 352

Credit 610

21

STATE BANK OF PATIALA & ORIENTAL BANK OF COMMERCE

Sr. No.

Particulars SBOP (Fatehgarh Sahib)

OBC (Ferozepur)

1. Number of villages covered 8 16

2. Number of households in these villages

2500 2895

3. Number of accounts opened 1140 2705

4. Amount of deposit collected 150729 86900

5. Number of Bio Metric Cards

issued

742 1179

6. Whether transactions in Bio

Metric Cards started

Yes

Yes

7. If yes to 6 above, number of transactions held

Debit 201

Credit 670

Debit 550

Credit 660

The SBI has also started implementation of IT enabled BC BF model in some districts of Punjab the brief of the same is as follows;

District Enrollment of

accounts

Number of CSPs

appointed

Patiala 6451

(300 Cards Issued)

32

Tarn Taran 1174 9

Amritsar 1322 14

Ferozepur 1978 7

Muktsar 217 1

Ropar 127 1

Gurdaspur 5600 18

Hoshiarpur 6300 5

Jalandhar 250 1

PUNJAB NATIONAL BANK- URBAN (Non Smart Card based

project)

Sr. No. Particulars (Ludhiana) URBAN

1. Number of Kiosks established 2

2. Number of accounts opened 4381

4. Number of ID Cards issued 3000

22

It is a non smart card based project where the account holders would be issued ID Cards for identification and the bio metrics of the customer

would be captured in the system.

The House may review the progress

6.II Incentive Scheme for Quicker Adoption of Electronic Benefit

Transfer (EBT) for Government Schemes The Deputy Governor, Reserve Bank of India vide DO letter dated 25th

February, 2009 addressed to The Chief Secretary, Government of Punjab has conveyed the modalities of implementation of EBT for payment of social

security schemes of the Government. The salient features of the scheme are:-

RBI had constituted a High Level Committee to go into the issues

connected with the modalities of Electronic Benefit Transfer and to

suggest a common strategy for adoption by the State Governments. Based on the recommendations of the Committee, RBI has proposed an

Incentive Scheme to quicken the pace of adoption of the Smart Card based Electronic Benefit Transfer (EBT) mechanism by the banks and roll out the EBT system in the States that are ready to adopt the

Scheme. As per the Scheme, RBI would partially reimburse the cost of opening of

accounts with Bio-Metric access @ Rs. 50/- per account through which payment of social security benefits, NREGA payments and payments under other Govt. benefit programmes would be routed.

Reimbursement would be made on the basis of the data supplied by the State Government & banks on the number of new accounts opened through which Government payments have been routed.

The incentive package would be dependent on the State Governments agreeing to pay to the transacting banks, the transaction fee of 2% of

the value of government payments effected through these accounts. The reimbursement by RBI would be available for a limited period,

which could be decided by mutual consultation.

As the incentive package would depend upon State Government

agreeing to pay transaction fee of 2% to the transacting bank, the Convener

Bank vide letter dated 6th April, 2009 has taken up with the State Government

23

for seeking their approval in the matter and the social security schemes which would be brought under the ambit of the EBT Scheme.

A meeting of major banks operating in the State i.e. PNB, SBI, SBOP,

PSB, OBC, Uco Bank, Axis Bank & HDFC Bank were arranged by Principal Secretary Finance, Government of Punjab on 26th May 2009 & 24th July 2009 which, on account of some exigencies, were postponed. However, before

meeting of 26th May 2009, a brief preliminary meeting of these banks was arranged by the Convener Bank during which a consensus was arrived at about implementation of EBT. Further, it was observed that other modalities,

including transaction fee to be paid by State Government, can be worked out on receipt of information from State Government in regard to number of

beneficiaries to be covered and amount to be disbursed under this system. Moreover, it also needed to be clarified as to whether the State Government proposes to implement the scheme in whole State or in some select districts

on pilot basis.

During 1st meeting of Steering Committee, held on 19th June 2009, the

representative of IF & B (Pb) apprised that there are 1.47 lakh beneficiaries under NREGA scheme and 4.93 lakh beneficiaries under State Government

schemes of Social security. The amount involved is approximately Rs. 700 crore.

To a query as to whether the Government is planning to launch this project for the State as a whole or on pilot basis in some select districts where number of beneficiaries are large, the representative of IF & B (Pb) apprised

that nothing has been finalized as yet and the State Government is working on all the aspects related to the implementation of the scheme.

The Directorate of IF & B (Pb) may apprise the further

developments in the matter.

6.III 100% Credit Inclusion of Rural Households

During 106th meeting of SLBC, it was suggested that to achieve 100%

Credit Inclusion, banks may make efforts to provide at least one credit card either KCC or GCC to all rural households. Accordingly, all the controlling heads of banks & LDMs have been requested to implement the decision of

SLBC in letter & spirit.

24

All the controlling heads of banks are once again requested to provide at least one credit card to each rural household and

LDMs are requested to get completed this process and send the progress achieved in respect of their respective districts.

6.IV Financial Literacy cum Credit Counseling Centres

Pursuant to Para 162 of Annual Policy Statement for the year 2007-08, RBI, Central Office, Mumbai vide circular dated 10.5.2007 addressed to all SLBC Convener Banks, had desired to set up a “Financial Literacy-cum-Credit

Counseling Centre” in any one of the districts and based on the experience gained to extend this facility in other districts. As per the decision of 101st

meeting of SLBC the lead banks have opened Financial Literacy cum Counseling Centers at all the 20 districts of the State.

The consolidated performance of these FLCCs, up to March 2009, is given below;

(Amount Rs. in Lakh) Particulars Number of persons

who made enquiries No. of persons who

availed services Amount mobilized/ disbursed/

Invested

During current

Quarter

Cumulative During current

Quarter

Cumulative During current

Quarter

Cumulative

Deposit A/Cs

999 7672 831 5971 932 3265

Credit Related

1015 4246 584 2008 1559 6357

Education

Loans 55 408 26 186 159 737

Debt Swap 28 125 0 21 0 9 Industrial Loans

9 61 2 14 43 277

Guidance

on investments other than

banking services

0 385 0 65 0 37

Total 2106 12897 1443 8265 2693 10682 (Center wise information is as per Annexure VI)

25

Observations

Up to March 2009, Financial Literacy cum Credit Counseling Centers in Punjab have entertained enquiries of 12897 persons and out of

which 8265 persons have availed the services after getting counseling from the centers.

Out of the above, 7672 persons made enquiries about Deposits

Schemes of banks, 4246 enquiries were credit related, 408 persons enquired about the Education Loan Scheme, only 125 enquiries were made about the Debt Swap Scheme of Banks, 61 persons enquired

about Industrial loans and as many as 385 enquires were made in respect of investments other than banking services.

Further individual centre wise analysis reveals that the functioning of the centers at Fatehgarh Sahib, Hoshiarpur, Mansa, Muktsar, & Sangrur requires more publicity.

The House may review the performance of FLCCs.

The controlling heads of banks are requested to ensure that the FLCCs function strictly as per Model Scheme circulated by RBI vide

their letter dated 4th February 2009 addressed to the CMDs/CEOs of all Scheduled Commercial Banks. A copy of the Model Scheme was also provided in the agenda papers of 107th meeting of SLBC.

Item No. 7 Review of Performance of Banks (Excluding Cooperative Banks) in Key Areas relating to Deposits, Advances & Priority Sector Advances

The comparative position of key banking parameters is given below;

26

(Amount Rs. in crore) Parameter As At Variation

March 2007

March 2008

March 2009

March 2008 / March 2007


Absolute %age Absolute %age

Branches 2899 3048 3209 149 5.1 161 5.3 Agg. Dep. 86359 99868 119145 13509 15.6 19277 19.3 Advances 59484 71512 81807 12028 20.2 10295 14.4 PS Adv. 30858 36665 41547 5807 18.8 4882 13.3 Agri. Adv. 14121 17441 19780 3320 23.5 2339 13.4 Adv. to Small Enterprises

7765 10249 13000 2484 31.9 2751 26.8

Weaker Sector Adv.

5287 7483 8910 2196 41.5 1427 19.1

DRI Adv. 5 4 9 -1 -20.0 5 125.0 (Bank-wise position as at March 2009 is given in Annexure- VII)

7. I Branch Expansion 161 new branches of Commercial Banks were opened in the State

during the period from 1st April 2008 to 31st March 2009, thus raising the network of branches from 3048 as at March 2008 to 3209 as at March 2009.

Further, area wise analysis in regard to branch expansion is summarized below:-

Number of Branches

As At Variation March 2007

March 2008

March 2009

March 2008/ March 2007

March 2009/ March 2008

Absolute Absolute Rural 1135 1168 1212 33 44 Semi Urban 855 918 964 63 46 Urban 909 962 1033 53 71 Total 2899 3048 3209 149 161

Observations During the review period, increase in number of branches/ conversion

of extension counters of banks in Urban area of Punjab was of the order of 71,

This is followed by Semi Urban areas, which registered an increase of 46 branches/ conversion of extension counters,

27

Whereas, the increase of branch network is 44 in rural areas.

This is for the information of the House.

7.II Deposit Growth

The aggregate deposits of the Banks in Punjab increased by Rs. 19277

crore, from Rs. 99868 crore as at March 2008 to Rs. 1,19,145 crore as at March 2009, thus posting a growth of 19.3% as against an increase of Rs. 13509 crore or 15.6% during the corresponding period last year (1st April

2007 to 31st March 2008).

Further area wise analysis in regard to deposit mobilization is summarized below:-

(Amount Rs. in Crore) Aggregate

Deposits As At Variation

March 2007

March 2008

March 2009




Rural 20508 23046 27638 2538 12.4 4592 19.9 Semi Urban 30482 35184 40994 4702 15.4 5810 16.5 Urban 35369 41638 50513 6269 17.7 8875 21.3 Total 86359 99868 119145 13509 15.6 19277 19.3

Observations During the review period, the deposit mobilization in Urban areas has

grown by 21.3%, Whereas, the same in rural & semi urban areas has gone up by 19.9%

& 16.5% respectively.


7.III Credit Expansion

The gross credit in the State increased by Rs. 10295 crore, from Rs. 71512 crore as at March 2008 to Rs. 81807 crore as at March 2009, thus

exhibiting a growth of 14.4% as against an increase of Rs. 12028 crore or 20.2% during the same period last year.

28

Further area wise analysis in regard to credit expansion is summarized below:-

(Amount Rs. in Crore) Total

Advances As At Variation

March 2007

March 2008

March 2009




Rural 10769 11988 14130 1219 11.3 2142 17.9 Semi Urban 14260 18383 22087 2123 14.9 4704 27.1 Urban 34455 41141 45590 8686 25.2 4449 10.8 Total 59484 71512 81807 12028 20.2 10295 14.4

Observations During the review period, the growth in outstanding advances in semi

urban & rural areas was better than that of last year, Whereas in urban area it was lower as compared to previous year.


7. IV. i a) Overall CD Ratio

The comparative position of overall CD Ratio of Commercial Banks is as below:-

Period CD Ratio % Variation

March 2007 68.9 -

March 2008 71.6 +2.7

March 2009 68.7 -2.9 (Bank wise CD Ratio as at March 09 is per Annexure VIII.i).

Observations

During the period under review overall CD Ratio of Commercial Banks

for the State of Punjab witnessed a decline of 2.9 PPs from 71.6% as at

March 2008 to 68.7% as at March 2009.

The House may review the overall CD Ratio.

29

7. IV. i b) CD Ratio - Rural Areas

The comparative position of CD Ratio of rural areas in Punjab is as follows,

(Amount Rs. in crore)

Period Rural Variation PPs Deposit Advances CD Ratio %

March 2007 20508 10769 52.51 -

March 2008 23046 11988 52.02 -0.49

March 2009 27638 14130 51.13 -0.89

Observations During the review period, the CD Ratio of Rural areas has registered a

marginal decline of 0.89 PPs from 52.02% as at March 2008 to 51.13% as at March 2009.


7. IV. i c) CD Ratio - Semi Urban Areas The comparative position of CD Ratio of Semi Urban areas in Punjab is

as follows, (Amount Rs. in crore)

Period Semi Urban Variation PPs Deposit Advances CD Ratio %

March 2007 30482 14260 46.78 -

March 2008 35184 16383 46.56 -0.22

March 2009 40994 22087 53.88 +7.32

Observations

During the review period, the CD Ratio of Semi Urban areas has

witnessed an increase of 7.32 PPs from 46.56% as at March 2008 to 53.88% as at March 2009.


30

7. IV. i d) CD Ratio - Urban Areas

The comparative position of CD Ratio of urban areas in Punjab is as follows,


Period Urban Variation PPs Deposit Advances CD Ratio%

March 2007 35369 34455 97.42 -

March 2008 41638 43141 103.61 +6.19

March 2009 50513 45590 90.25 -13.36

Observations During the review period, the CD Ratio of Urban areas has witnessed a

decline of 13.36 PPs from 103.61% as at March 2008 to 90.25% as at March 2009.


7.IV.ii CD Ratio on basis of credit as per utilization and Resource support under Rural Infrastructure Development Fund of NABARD

As per the information available, NABARD has provided resource

support of Rs. 2464.58 crore up to March 2009 to Punjab Government under RIDF for development of infrastructure as against total sanctioning of Rs. 2937.70 crore. When we add this amount of Rs. 2464.58 crore to the credit

provided by banks and calculate the CD Ratio on the basis of Cu + RIDF, the same works to 70.7%.

7.IV. iii) Credit plus Investment to Deposit Ratio

To work out the “Credit plus Investment to Deposit Ratio”, investments made in the State Govt. bonds by the banks, Rs. 915 crore have been added to the credit provided by banking system in the State and

resultantly the flow of credit has gone up to Rs. 82722 crore. For the period ended March 2009 the “Credit plus Investment to Deposit Ratio” is as

follows:-

31


Deposits Advances plus investments in State Government bonds

(C+I)/D Ratio

119145 82722 69%

(72%) (Figures in brackets denote position as at March 2008)

7.IV.iv CD Ratio of Financial System

The CD Ratio of Financial System after inclusion of Deposits & Advances of the Cooperative Banks, Punjab Agriculture Land Development Banks and Financial Institutions comes to 73.4% as per detail given as under:-

(Amount Rs. in Crore)

S.N. Particulars Deposits Advances CD Ratio

1. Commercial Banks 119145 81807 68.7%

2. Including Cooperative Banks 125365 89192 71.1%

3. Including PADBs* 125365 91316 72.8%

4 Including Financial Institutions** 125365 92037 73.4% *Advances PADB (Rs. 2124.20 crore) **Financial Institutions PFC (Rs. 207.37 crore), PSIDC (Rs. 202.25 Crore), SIDBI (Rs. 310.94 crore).

The CD Ratio of Financial System has declined by 3.5 PPs from 76.9% as at March 2008 to 73.4% as at March 2009.

The House may review the position.

7.V Credit Deposit Ratio - Implementation of the Recommendations of Expert Group on CD Ratio

AS per the recommendations of an Expert Group constituted by GOI under the Chairmanship of Shri Y.S.P. Thorat, the then MD, NABARD a Special Sub-Committee (SSC) of District Level Consultative Committee (DLCC) was to

be constituted in districts with CDR of less than 40%, for drawing up “Monitorable Action Plans” (MAPs) to increase the CDR on a self set

graduated basis. Concerned LDM of the district will be convener of SSC with DCO, DDM, NABARD, LDO, RBI and District Planning Officer as its members.

SLBC (Pb) observed that CD Ratio as at September 2005 of 4 districts i.e. Hoshiarpur, Jalandhar, Kapurthala and Nawanshahar was below 40% and it was decided that a Special Sub Committee (SSC) of District Level

Consultative Committee (DLCC) be constituted. As per feedback available

32

from concerned LDMs, the SSC of these districts were constituted and its meeting (s) have been convened and the details of the Monitorable

Actionable Points and other suggestions made are given below:

A) Conduct of meetings of SSC and Monitorable Action Plans (MAPs)

The conduct of the meetings of SSC alongwith the Monitorable Action Plan drawn up for increasing CD Ratio is as follows:-

District Date of Meeting Monitorable Action Plan

Jalandhar 10.01.2006 25% by 31.03.2006 40% by 31.03.2010 60% by 31.03.2015

Kapurthala 10.01.2006 23% by 31.03.2006 40% by 31.03.2010 60% by 31.03.2015

Nawanshahar 10.01.2006 18% by 31.03.2006 35% by 31.03.2009 60% by 31.03.2015

Hoshiarpur 11.01.2006 28% by 31.03.2006 40% by 31.03.2009 60% by 31.03.2012

B) Suggestions to improve the CD Ratio

The CD Ratio of a district/ region is dependant on various credit and non - credit inputs and during the meetings at various districts the following

suggestions have been given to improve the CD Ratio:-

B i) Credit Inputs

Banks to formulate and implement area/ block specific credit schemes,

Investment credit under agriculture be strengthened and for which activities like dairy, poultry, bee keeping, fishery etc. should be encouraged,

NABARD has already prepared Project Reports of 140 activities, which should be studied and entrepreneurs may be motivated to undertake these activities and banks should provide financial assistance,

Banks to make analysis and monitor CD Ratio of each branch and initiate suitable measures to improve the same.

B ii) Non Credit Inputs

Special Economic Zones (SEZ) be set up to attract the establishment of new medium/ big industrial units,

33

The level of infrastructure needs further improvement for smooth conduct of business.

Special fiscal incentives may be provided in line with the neighboring States like HP & J&K to attract new units and to retain the existing

units, Cluster approach may be adopted by providing special package for

development of industry,

NRIs should be encouraged to make investments in establishment of new units.

The Convener Bank has advised the LDMs of these districts & controlling heads of banks to monitor the CD Ratio on continued basis as

suggested by RBI.

C) CD Ratio of Identified Districts as at 31.03.2009

During 105th meeting of SLBC it was observed that emphasis should be on providing adequate credit by banks to all sectors of the economy.

Further, as NRI deposits has dual effect on CD Ratio i.e. it enhance the level of deposits i.e. the denominator of the ratio and also do not create any fresh

demand for credit as the activities from where these savings have been generated are being performed in the countries where the NRIs are residing/ working and as such the nominator of the ratio is not influenced. In view of

this, it was resolved that CD Ratio of these districts net of NRI deposits should be calculated and reviewed vis– a- vis Monitorable Action Plan in the meetings of SLBC.

The comparative position of Monitorable Action Plan and CD Ratio (net

of NRI deposits) as at March 2008 & March 2009 of these four districts is given below:- District CD Ratio

(%) as at March 09/

March 10 as per MAP

CD Ratio % (including

NRI Deposits) as at March 08

CD Ratio % (including


Growth March 09/

March 08 (PPs)

CD Ratio % (Net of


CD Ratio % (Net of


Growth March 09/ March 08

(PPs)

Jalandhar 40 (Mar.10)

39.36 39.10 -0.26 51.99 49.50 -2.49

Kapurthala 40 (Mar.10)

32.76 30.78 -1.98 42.42 40.55 -1.87

Nawanshahr 35 (Mar.09)

28.48 25.61 -2.87 39.46 37.70 -1.76

Hoshiarpur 40 (Mar.09)

31.83 32.31 +0.48 38.53 40.25 +1.72

34

Observation

The CD Ratio (Net of NRI deposits) as at March 2009 of all the four identified districts is above the targeted level as per Monitorable Action

Plan for March 2009/2010. The concerned LDMs are requested to continue to review the CD Ratio

in the meetings of Special Sub Committee of DCC so as to reach the

next target of CD ratio as envisaged under Monitorable Action Plan.

The House may review the CD Ratio vis a vis MAP to improve

CD Ratio of these identified districts.

7.VI Priority Sector Advances

During the period under review, the Priority Sector Advances in Punjab

grew by Rs. 4882 crore, from Rs. 36665 crore as at March 2008 to Rs. 41547 crore as at March 2009 thus showing a growth of 13.3% as against an increase of Rs. 5807 crore or 18.8% during the corresponding period previous

year.

The share of incremental PS advances to incremental advances during the period under review is 47.2%.

7.VII Agriculture Advances

The Agriculture Advances in the State during the period under review witnessed an increase of Rs. 2339 crore, from Rs. 17441 crore as at March 2008 to Rs. 19780 crore as at March 2009 thus showing a growth of 13.4% as

against an increase of Rs. 3320 crore or 23.5% during the same period last year.

The share of incremental agriculture advances to incremental Priority Sector Advances works to 50%.

7.VIII Advances to Micro & Small Enterprises

The advances to Small Enterprises during the period under review registered an increase of Rs. 2751 crore, from Rs. 10249 crore as at March 2008 to Rs. 13000 crore as at March 2009, thus showing a growth of 26.8%

as against an increase of Rs. 2484 crore or 31.9% during the corresponding period previous year.

35

The share of incremental advances to Micro & Small Enterprsies to

incremental Priority Sector Advances works to 56%.

7.IX Advances to Weaker Sector During the period under review, the advances to Weaker Sector

increased by Rs. 1427 crore, from Rs. 7483 crore as at March 2008 to Rs. 8910 crore as at March 2009, thus registering a growth of 19.1% as against an increase of Rs. 2196 crore or 41.5% during the same period last year.

7.X DRI Advances

Advances under DRI Scheme have shown an increase of Rs. 5 crore

from Rs. 4 crore as at March 2008 to Rs. 9 crore as at March 2009, thus

showing a growth of 125%. Introduction of revised guidelines on advances under DRI scheme, which inter alia contains to increase the credit limits from Rs. 6500/- to Rs. 15000/- and for Housing Loans under the scheme from Rs.

5000/- to Rs. 20000/- and revision in income criteria of eligible beneficiary from Rs. 6400/ p.a. in rural area to Rs. 18000/- p.a. and from Rs. 7200/ p.a.

to Rs. 24000/ p.a. in urban area & Semi Urban area will also help the banks to further enhance the credit under the scheme.

NABARD has informed the Convener Bank that Government of India has revised the targets of DRI and it has been decided that at least 10 loans

per rural branch per quarter are to be made by all Scheduled Commercial Banks instead of Five loans per branch per quarter as hitherto.

The Convener Bank has conveyed the bank wise targets based on the number of rural branches of each bank. The progress achieved up to March 2009 is as follows:

Institute Targets

(Accounts)

Achievement %age

Achievement Accounts Amount

Public Sector Banks 38560 6324 737 16.40

Private Sector Banks 720 0 0 0

Total 39280 6324 737 16.10 (Bank-wise performance is as per Annexure-IX).

The controlling heads of banks are requested to initiate

suitable steps for enhancing the progress and achieving the targets

for number of loans under DRI scheme.

36

The targets under DRI for 2009-10 on the basis of 10 loans per rural branch for PSBs and private sector banks have been worked as below;

Lending Institution Number of Rural

Branches as at March 2009

Target of Number of

DRI advances 2009-10

Public Sector Banks 988 39520

Private Sector Banks 24 960

Total 1012 40480 (Bank-wise targets are as per Annexure-X).

The controlling heads of banks are requested to pass on the

suitable instructions for achieving the targets.

7.XI Review of National Goals

According to revised guidelines of RBI, the banks are to achieve the

National Goals on Adjusted Net Bank Credit (ANBC) as at the end of previous year instead of NBC and for calculation of ANBC the outstanding FCNR (B) and

NRNR deposit balance will no longer be deducted for computation of ANBC, which now will be Bank Credit plus investments made in non – SLR bonds HTM category. It may be difficult for banks to arrive at such figures at State

level and as such the review of National Goal is made on the basis of Net Bank Credit as at the end of previous year, which means gross credit minus inter bank credit.

The comparative position relating to achievement of National Goals in

the State is given below:-

Sr.

No

Particulars Goal

%

%age Position as on March 2007

March 2008

March 2009

a) Priority Sector Adv. to Net Bank Credit 40 55 62 58

b) Agriculture Adv. to Net Bank Credit 18 25 29 28

Out of above i) Direct Agri. Adv. to Net Bank Credit

13.5

18

21

21

ii) Indirect Agri. Adv. to Net Bank Credit 4.5 7 8 7

c) Weaker Sector Adv. to Net Bank Credit 10 9 13 12

d) DRI Adv. to Total Adv. of Pre. Year 1 0.001 0.001 0.001

e) CD Ratio (Rural & Semi Urban) 60 49 49 53

f) Women Beneficiaries Advances to NBC 5 5.2 6.3 5.8

[Bank-wise performance under National Goals is as per Annexure-VIII (i) to (iii)].

37

Observations:

The ratio of Priority Sector Advances to Net Bank Credit as at March 2009 stands at 58% as against National Goal of 40%.

The share of Agriculture Advances to Net Bank Credit, as at March 2009 is 28% against the National Goal of 18%.

The share of Direct Agriculture Advances to Net Bank Credit is

21% against National Goal of 13.5% and share of Indirect Agriculture Advances is 7% against National Goal of 4.5%.

The advances to Weaker Sector are 12% of Net Bank Credit, as

against National Goal of 10%. In order to ensure achievements of sub targets of lending to weaker sector, RBI has advised banks to

contribute an aggregate amount of Rs. 2000 crore to Micro Small & Medium Enterprsies (MSME) (Refinance) Fund with SIDBI in advance on the basis of the bank’s projected shortfall in achievement of targets of

10% for lending to weaker section category as on last Friday of March 2009.

Although the credit under DRI advances has increased yet the Ratio of

DRI advances to total advances of previous year was below the level of 1%, which required to be achieved.

The CD Ratio of Rural & Semi Urban area is 53% which also needs to be improved.

The advances to Women Beneficiaries constitute 5.8% of Net Bank

Credit, against the National Goal of 5%.

The House may review. 7.XII Advances under Education Loan Schemes

The comparative progress is as follows;


Year Balance O/S Increase

Absolute %age

March 2007 575.69 - -

March 2008 641.86 66.17 11.49%

March 2009 764.86 123.00 19.16% (Bank-wise position as at March 2009 is as per Annexure-XI).

During the period under review, the advances under Education Loan schemes of banks witnessed a growth of 19.16% as against 11.49% during

38

the same period last year. The education loans outstanding have increased by Rs. 123 crore from Rs. 641.86 crore as at March 2008 to Rs. 764.86 crore

as at March 2009.

The House may review the progress. 7.XIII Advances to Minority Communities

The comparative position is given below:


Minority Community

March 2007

March 2008

March 2009

Outstanding Outstanding %age Growth

Outstanding %age Growth

Muslims 154.86 131.14 -15.14 182.38 39.07 Christians 65.47 65.13 -0.52 88.21 35.44 Budhists 2.77 1.85 -33.21 7.66 314.05 Zoroastrians 0.00 0.36 0.45 25.00 Total 223.10 198.48 -11.04 278.70 40.42

(Bank-wise position as at March 2009 is as per Annexure-XII).

The overall advances to minority communities have registered an increase of Rs. 80.22 crore, from Rs. 198.48 crore as at March 2008 to Rs.

278.70 crore as at March 2009, thus showing a growth of 40.42%. During the quarter ended March 2009, banks disbursed advances to the tune of Rs.

22.48 crore to 1309 borrowers belonging to minority communities. The bank-wise position is given as per Annexure XIII.

The House may review the performance.

7.XIV Advances to Women Beneficiaries

The comparative position of advances to women beneficiaries is given

below:- (Amount Rs. in Crore)

Year Balance O/S Increase %age to Net

Bank Credit Absolute %age

March 2007 2939.35 - - 5.2%

March 2008 3748.16 808.81 27.5% 6.3%

March 2009 4172.24 424.08 11.3% 5.8% (Bank-wise position as at March 2009 is as per Annexure- XIV).

39

The overall advances to women beneficiaries witnessed an increase of Rs. 424.08 crore from Rs. 3748.16 crore as at March 2008 to Rs. 4172.24

crore as at March 2009, thus registering a growth of 11.3%.

In the State of Punjab, the share of advances to women beneficiaries to Net Bank Credit as at March 2009 stands at 5.8%, against the target of 5%. The bank-wise position in respect of advances to women beneficiaries to total

advances as at March 2009 is given as per Annexure VIII(iii). During the quarter ended March 2009, banks disbursed advances to the

tune of Rs. 305.27 crore to 16620 women beneficiaries. The bank-wise position is given at Annexure-XV.

The House may discuss please.

7.XV Advances to SC Beneficiaries The comparative position of advances to SC beneficiaries is given as

under:- (Amount Rs. in Crore)

Year Balance Outstanding Increase

Absolute %age

March 2007 1045.07 - -

March 2008 1214.53 169.46 16.2%

March 2009 1368.11 153.58 12.6% [Bank-wise position as at March 2009 is given in Annexure- VII (iii)].

The overall advances to SC beneficiaries witnessed an increase of

Rs. 153.58 crore during the period under review, from Rs. 1214.53 crore as at March 2008 to Rs. 1368.11 crore as at March 2009, thus showing a growth of 12.6%, as against an increase of Rs. 147.05 crore or 14.9% during the same

period last year.

The House may review please.

Item No.8 Review of Govt. Sponsored Schemes & Programmes

8.I Swaranjayanti Gram Swarozgar Yojna (SGSY)

8.I.i The progress up to 31.03.2009

40

The progress up to 31st March, 2009 is summarized below:

A) Total Assistance

(Amt. Rs. in Lakh) Particulars 2007-08

March 08 2008-09 March 09

No. Amt. No. Amt.

Total number of Beneficiaries (both SHGs & Individual Swarozgaris) to whom loans

have been sanctioned

12706 - 10531 -

Out of which

SC Beneficiaries (Target being 50% of total)

9042 (71%)

- 8184 (78%)

-

Women Beneficiaries

(Target being 40% of the total)

8145

(64%)

- 6345

(60%)

-

Handicapped Beneficiaries


111

(1%)

- 92

(0.9%)

-

Target of Credit Disbursement - 2126 - 2220

Total Credit Disbursed - 3157 - 2676

% age Achievement - 148% - 121%

B) Through Self Help Groups

(Amt. Rs. in Lakh) Particulars 2007-08

March 08 2008-09 March 09

No. Amt. No. Amt.

Number of Self Help Groups formed 757 - 771 -

Number of SHGs undertaking economic

activities

727 - 636 -

Number of members of SHGs undertaking economic activities

7890 - 5892 -

Out of which

SC Beneficiaries

(Target being 50% of total)

5897

(75%)

- 4718

(80%)

-

Women Beneficiaries


7134

(90%)

- 5252

(89%)

-



44

(0.6%)

- 33

(0.6%)

-

Loan disbursed - 1581 - 1164

Subsidy disbursed - 740 - 550

Total assistance - 2321 - 1714

Average assistance per member (Target) - 0.25 - 0.25

Average assistance (Achievement) 0.29 - 0.29

41

C) Individual Progress

(Amt. Rs. in Lakh)

Particulars 2007-08 March 08

2008-09 March 09

No. Amt. No. Amt.

Number of cases sponsored 5178 - 5858 -

Cases sanctioned 4816 - 4639 -

Out of which

SC Beneficiaries

(Target being 50% of total)

3145

(65%)

- 3466

(75%)

-

Women Beneficiaries


1011

(21%)

- 1093

(24%)

-



67

(1.4%)

- 59

(1.3%)

-

Loan disbursed - 1576 - 1512

Subsidy disbursed - 436 - 432

Total assistance - 2012 - 1944

Average assistance per member (Target) - 0.25 - 0.25

Average assistance (Achievement) 0.42 - 0.42 (District wise progress is as per Annexure XVI).

The Department of Rural Development in consultation with SLBC (Pb)

has chalked out the following quarterly schedule for disposal of cases under SGSY:

Quarter Target for Disbursement

During the Qtr. Cumulative

I 15% 15%

II 20% 35%

III 30% 65%

IV 35% 100%

Observations:

As against annual target of Rs. 2220 lakh for credit disbursement, banks up to March 2009 have disbursed loans

amounting to Rs. 2676 lakh, the %age achievement works to 121% as against 148% during the corresponding period last

year. Thus achieving the annual targets.

The targets of average assistance also stands achieved both under individual swarozgaris as well as under SHGs.

42

Similarly the cumulative targets of assistance to SC & women beneficiaries also stand exceeded.

However, the benchmark for providing assistance to handicapped beneficiaries has been missed.

On cumulative basis, 78% SC beneficiaries have been sanctioned loan against target of 50% under the scheme and 60% women beneficiaries have been sanctioned loan against target of 40% under the scheme,

whereas the achievement of handicapped beneficiaries is 0.9% against the goal of 3%.

The House may discuss and review the progress please.

8.I. ii Setting up of Rural Self Employment Training Institutes – RSETIs

Reserve Bank of India, Central Office, Mumbai vide letter dated April 28, 2008 has informed that SGSY is a major self- employment programme

implemented by Ministry of Rural Development aiming to establish a large number of micro enterprises in rural areas. Rural poor have potential and

determination to come out of poverty but they require capacity building and skill upgardation to ensure their sustainability. In the 11th meeting of Central Level Coordination Committee (CLCC) of SGSY held on 8th February 2008

representatives of commercial banks and State Governments had agreed that training institutes like RUDSETIs need to be established for assisting the beneficiaries of SGSY in capacity building and skill upgardation. The issue of

allotment of land to these institutes was also discussed in the meeting and all the State Secretaries had agreed in principle to get the land allotted on

priority basis.

Looking into the proven usefulness and high success rate of these institutions and consensus between bankers, State Governments, Ministry of

Rural Development & RBI requested that the issue may be discussed in the meeting of SLBC. The Convener Bank had taken up the matter of allotment of

land to such training institutions with Department of Rural Development and Institutional Finance & Banking, Government of Punjab. The issue was also discussed in the meetings of SLBC & Steering Committee.

The feedback available from LDM, Ferozepur reveals that State Government had earlier allotted 10 acres of land to OBC for setting up of Farmers’ Training Centre at village Ratoul Bet, district Ferozepur. The OBC has

43

lead responsibility for Ferozepur district. Now the district administration has allowed OBC to use 1 acre of land out of above 10 acres for setting up of

RSETI. OBC had already constituted a Trust for setting up of such centers and entered into MOU with National Institute of Rural Development (NIRD),

Hyderabad. The ADC (Development) Ferozepur has also advised OBC to get the certificate of change of land use from appropriate authority so that permanent building of the RSETI is got constructed at the earliest. OBC has

further informed that first installment of Rs. 48.95 lakh has been released by NIRD for setting up of permanent RSETI at village Ratoul Bet, Ferozepur. Further, for the time being, OBC has started RSETI from the premises of Lead

District Manager’s Office at Ferozepur.

The feedback available The Department of Rural Development, Government of Punjab & Lead District Managers reveals that in following districts to begin with it has been proposed to start RSETI at the existing

State Government buildings;

District Name of Institution whose building would be used

Amritsar BDPO Office, Harsha Cheena

Bathinda Working Women Hostel, Red Cross

Mansa ITI

Ludhiana LDM Office

Patiala ITI

Ropar ITI

Mohali BDPO at village Majri

Muktsar ITI

The further information available from Department of Rural Development & Lead District Managers reveals that State Government also

proposes to allocate the land for setting up of RSETIs at the following places;

District Land for construction of RSETI allocated/ proposed to be allocated

Amritsar Land proposed to be allocated at village Harsha Cheena

Bathinda Land proposed to be allocated at village Kalyan Sukha

44

Moga Land proposed to be allocated at village Duneke

Hoshiarpur Land proposed to allocated at village Bassi Muda

Gurdaspur Land proposed to be allocated at village Bhulla Chak

Jalandhar Land proposed to be allocated at village Alowal

Mohali Land proposed to be allocated at village Koli Majra, Lalru

Kapurthala Land proposed at village Badshah

Tarn Taran Land Proposed at Block Samiti Tarn Taran

Muktsar Land Proposed to be allocated at Kot Bhai

Sangrur Land Proposed to be given at village Ghawda

Nawanshahr Land proposed to be allocated at village Gujarpur

The representative of Department of Rural Development may apprise about the latest position in regard to starting functioning of

RSETIs from existing buildings and allotment of land for construction of building to establish RSETI on permanent basis.

8.II Micro Financing – Self Help Groups

The summary of progress made in implementing the concept of Self

Help Groups both under the Scheme of SGSY and Normal Lending up to 31.03.2009 is given below:

SHGs

As on 31.03.2008

SHGs

As on 31.03.2009

Gap between formed & credit linked as on 31.03.09

From 01.04.08

up to 31.03.09

No. of SHGs

formed

No. of SHGs credit linked

No. of SHGs

formed


No. of SHGs

formed


17148 (15238)

13473 (10997)

19128 (17148)

15349 (13473)

3779 (3675)

1980 (1910)

1876 (2476)

(Bank wise progress is as per Annexure XVII). (District wise Progress is as per Annexure XVIII).

Figures in brackets denote position relating to the same period previous year

Observations Up to 31.03.2009, 19128 Self Help Groups have been formed out of

which 15349 Groups have been linked with the bank finance since inception of the scheme.

45

These groups include groups formed under SGSY (5927) of beneficiaries living Below Poverty Line (BPL) and groups formed in

general category (13201), which also include beneficiaries other than living below BPL. Further, 4060 groups have been linked with bank

credit under SGSY and balance 11264 groups linked with credit are under general scheme of banks.

The gap between the SHGs formed & linked with bank credit is 3804.

During financial year 2008-09, in all together 1980 Groups have been formed & 1851 groups have been linked with bank finance as against formation of 1910 groups and linkage of 2476 groups with bank credit

during the same period last year. The pace of formation & credit linkage of SHGs needs to be further

accelerated.

The House may discuss the bank wise progress.

8. III Prime Minister Employment Generation Programme

(PMEGP)

The progress achieved in implementing new scheme of PMEGP is as follows:

(Amount Rs. in Lakh) Institute Target Sponsored Sanctioned Margin

Money Disbursed

Number Margin Money

Number Margin Money

KVIC 450 540 303 145 330.83 218.00

KVIB 450 540 392 251 476.00 262.82

DIC 600 720 1665 646 662.07 128.71

Total 1500 1800 2360 1042 1468.90 609.53 (Bank - wise performance is as per Annexure-XIX).


Targets for 2009-10 – Under PMEGP

KVIC, Mumbai has vide letter dated 13.6.2009 has Communicated the following targets under PMEGP for the year 2009-10;

46

Particulars KVIC KVIB DIC Total

Rural Urban

No. of Projects 402 402 266 270 1340

Margin Money (Rs. in Lakh)

482.41 482.40 321.21 322.00 1608.02

Employment 4019 4019 2660 2700 13398 (District -wise targets 2009-10 are as per Annexure-XX).

During 1st meeting of Steering Committee it was resolved that KVIC

may coordinate to allocate district wise bank wise targets for 2009-10.

8.IV Swarn Jayanti Shahari Rozgar Yojana (SJSRY)

The progress achieved during 2008-09 up to March 2009 in implementing SJSRY is given below;

Particulars 2007-08 2008-09

Target 1500 1500

Cases Identified 96 142

Cases Sponsored to banks 85 82

Cases Sanctioned by banks 71 57

Cases Disbursed by banks 49 49

The feedback available from SUDA reveals that no subsidy funds for 2008 - 09 have been received from Government.


Item No. 9 Swarojgar Credit Card Scheme

The progress up to 31.03.2009 under the Scheme is as under;

47

(Amt. in Lac) Particulars Commercial

Banks

RRBs Co-op

Banks

Total

Annual Target (Nos.)

13500 (5435)

4500 (6665)

5000 (2400)

23000 (14500)

No. of SCCs Issued 2180 (2167)

3057 (4056)

1096 (1506)

6333 (7729)

Amount Disbursed 1099 (763)

1294 (1759)

330 (519)

2723 (3041)

Figures in brackets denote position relating to March 2008 (Bank-wise progress is as per Annexure-XXI).

The analysis of the data reveals that against enhanced annual target of

23000 Swarojgar Credit Cards (SCCs), Banks, up to 31.03.2009, have issued 6333 cards with loan amount to the tune of Rs. 2723 lac.

Some of the Banks like Andhra Bank, Bank of Maharashtra, Dena Bank, IOB, SBBJ, and Vijaya Bank have not issued any Swarojgar Credit Card under

the scheme.

The house may review the progress please.

Item No. 10 Annual Credit Plan 2008-09

10.I Annual Credit Plan 2008-09 – Achievements up to 31.03.2009


Sector ACP 2007-08 up to March 2008

ACP 2008-09 up to March 2009

Targets Ach. % Ach. Targets Ach. % Ach.

Agriculture 20646 20718 100 24362 24192 99

Out of which

Crop Loan

16785 17768 106 18600 19408 104

MSE 4474 4834 108 5563 5917 106

Others 5513 6000 109 6632 7328 110

Total 30633 31552 103 36557 37437 102

Observations:

The overall as well as targets under Crop Loans, Small Enterprises & others Priority Sectors have been achieved

48

whereas targets allocated to agriculture have been missed marginally (achievement being 99%) under Annual Credit

Plan 2008-09.

As against overall annual targets of Rs. 36557 crore, Banks have

disbursed loans to the order of Rs. 37437 crore. The achievement comes to 102%. Further, the overall disbursement under Annual

Credit Plan 2008-09 have gone up by Rs. 5885 crore (18.6%) as compared to the disbursements made during corresponding period of previous financial year.

As against target of Rs. 24362 crore under agriculture & allied sector, Banks have disbursed loans to the order of Rs. 24192 crore. The

achievement comes to 99%. The disbursement under agriculture & allied agriculture activities under Annual Credit Plan 2008-09 has also gone up by Rs. 3774 crore (16.8%) as compared to

the disbursements made during the same period last year.

Banks disbursed crop loans amounting to Rs. 19408 crore against target

of Rs. 18600 crore. The achievement comes to 104%.

Banks disbursed loans amounting to Rs. 5917 crore against the target

of Rs. 5563 crore set forth for Micro & Small Enterprises Sector. The achievement comes to 106%. The disbursement under this sector

has also gone up by Rs. 1129 crore or 23.3% as compared to the corresponding period last year.

Banks disbursed loans to the tune of Rs. 7328 crore under Others

Priority Sector against the target of Rs. 6632 crore. The achievement comes to 110%. The disbursement under this sector has also

gone up by Rs. 1328 crore or 22.1% as compared to the corresponding period last year.

District wise Analysis

The perusal of district-wise progress up to March 2009 under ACP 2008-09 as given at Annexure XXII reveals as under: -

The overall targets have been exceeded in all the districts expect

Bathinda, Jalandhar, Mansa, Sangrur, Muktsar & Barnala where it was missed by varying margins.

49

Similarly, the targets under Agriculture & Allied Sector have been

achieved in all districts expect Bathinda, Fatehgarh Sahib, Faridkot, Jalandhar, Mansa, Sangrur, Muktsar & Barnala.

Likewise, the targets under Crop Loans have also been achieved in all

districts except Bathinda, Faridkot, Gurdaspur, Mansa, Sangrur, Muktsar & Barnala where it was missed by varying margins.

The targets under Small & Micro Enterprises have been exceeded in all districts except Bathinda, Jalandhar, Kapurthala, Mansa, Patiala,

Muktsar, Nawansahar, Barnala & Tarn Taran.

The targets under Others Priority Sector have been missed by varying

margins in Amritsar, Kapurthala, Ludhiana, Patiala, Nawanshar & Tarn Taran doistricts.

The house may review the progress under ACP 2008-09 up to March 2009.

Bank wise Progress

The study of bank-wise progress given as per Annexure- XXIII reveals as follows:-

Agriculture & Allied Activities

As against target of Rs. 13176 crore under this sector, the Commercial

Banks, have disbursed loans amounting to Rs. 14052 crore. The achievement works to 107%.

The RRBs have disbursed loans amounting to Rs. 1258 crore under agriculture sector as against target of Rs. 960 crore, thus showing achievements of 131%.

Whereas, the Cooperative Banks have disbursed loans amounting to Rs. 8881 crore against targets of Rs. 10226 crore. The achievement comes to 87%.

50

Micro & Small Enterprises / Non Farm Sector

As against target of Rs. 5310 crore under this sector, the Commercial

Banks, have disbursed loans amounting to Rs. 5761 crore. The achievement comes to 108%.

The RRBs have disbursed loans amounting to Rs. 15.92 crore under this sector as against target of Rs. 17.07 crore, the achievement comes to 93%.

Whereas, the Cooperative Banks have disbursed loans amounting to Rs. 141 crore against target of Rs. 236 crore, the achievement works to 60%.

Others Priority Sector

As against target of Rs. 5553 crore under this sector, the Commercial Banks, have disbursed loans amounting to Rs. 6041 crore, the achievement comes to 109%.

The RRBs have disbursed loans amounting to Rs. 74 crore under this sector as against target of Rs. 49 crore, thus achieving the target by 151%.

The Cooperative Banks have disbursed loans amounting to Rs. 1212 crore against target of Rs. 1030 crore, thus achieving the target by

118%.

The house may review the bank wise progress under ACP

2008-09.

10.II Flow of Investment Credit under Agriculture

The comparative position of achievement of targets for investment

credit under Annual Credit Plans 2006-07, 2007-08 & 2008-09 is as under:


Annual Credit Plan

Investment Credit under Agriculture

Proportionate Targets Achievement

2006-07 3670.89 4502.72 (123%)

2007-08 3860.49 2949.19 (76%)

2008-09 5761.39 4783.42(83%) (Figures in parenthesis denote % age achievement over targets).

(Bank-wise progress is as per Annexure-XXIV).

51

Observations:-

As against proportionate target of Rs. 5761.39 crore for Agri Investment

credit under ACP 2008-09, banks have disbursed loans amounting to Rs. 4783.42 crore, the %age achievement works to 83% as against 76% during the corresponding period last year.

The house may review please.

10.III Annual Credit Plan – Targets 2009-10

The exercise of preparation of Annual Credit Plans for the year 2009-10 has been completed and banks have allocated targets under different heads of Priority Sector.

The summary of the same is as follows:


Sector Ach. ACP

2008-09

Target

ACP 2009-10

Projections

PLP 2009-10

Growth

Tar. ACP 09-10 /

Ach. ACP 08-09

Variation

Tar. ACP 09-10 /

PLP 09-10

Agriculture 24192 27122 29945 12.11% -2823

MSE/NFS 5917 6985 6365 18.05% +620

Others PS 7328 7626 9765 4.07% -2139

Total PS 37437 41733 46075 11.48% -4342 (District wise targets are as per Annexure - XXV). (Bank wise Targets are as per Annexure- XXVI).

Observations

Banks have projected overall target of Rs. 41733 crore under ACP 2009-10, which is higher by 11.48% over the achievements under ACP 2008-09. However, these are lower than the potential/projections made

under PLPs of NABARD by Rs. 4342 crore. Under Agriculture sector, banks have allocated target of Rs. 27122

crore under ACP 2009-10, which is higher than the achievements under ACP 2008-09 by 12.11%. However, these are also lower than the potential/projections envisaged under PLPs of NABARD by Rs. 2823

crore.

52

The targets fixed under ACP 2009-10 for MSE/NFS are Rs. 6985 crore which are also higher than the achievements under ACP 2008-09 by

18.05%. Moreover, these are higher than the potentials under PLPs of NABARD for 2009-10 by Rs. 620 crore. .

The targets under ACP 2009-10 for Others PS at Rs. 7626 crore are also higher than the achievements under ACP 2008-09 by 4.07%. However, the same are lower than the potential identified under PLPs of NABARD

for 2009-10 by Rs. 2139 crore. The Potentials envisaged under PLP are based on the assumptions of

infrastructure whereas the targets finalized under ACP are based on the

past performance as well as the potential available under various sectors.

The controlling heads of banks are requested to monitor the

progress under ACP 2009-10 & ensure to achieve the targets, as

hitherto.

10.IV Progress under Debt Swap Scheme

NABARD Chandigarh informed that it was decided in Hon’ble Finance Minister’s meeting with CEOs of the Public Sector Banks held on 1st May 2008 that atleast 3% of target for agriculture credit in 2008-09 is to be earmarked

for giving loans under “Debt Swap Scheme”. Accordingly it was desired that banks provide 3% of the targeted flow under agriculture sector for “Debt

Swap Scheme” and this issue may be included as a regular agenda item in the meetings of SLBC. The Convener Bank had allocated the targets under Debt Swap Scheme to all banks on the basis of targets for agriculture under

ACP 2008-09. The progress achieved during 2008-09 is as follows:


Disbursements under Agri.

2008-09 up to March 09

Target for Debt Swap (on the basis of 3%

of Agri.)

Ach. Under Debt Swap

2008-09 up to March 2009

%age Ach.

2419177 72575 7970 11% (Bank wise progress is as per Annexure XXVII)

53

The progress needs improvement. The controlling heads of banks are requested to apprise the problems being faced in

accelerating the progress under the scheme.

Item No. 11 Farmers’ Club Programme

NABARD has been facilitating formation & nurturing of Farmers’ Clubs

since 1982. With a view to making the farmers club programme sustainable and more vibrant, a comprehensive review of the programme was made and a few changes have been evolved by NABARD, which are effective from April

2008. The mission of the programme is development through credit, technology transfer, awareness and capacity building.

The cumulative progress achieved in formation of Farmers’ Clubs in

Punjab is as follows:

Farmers’ Clubs Formed Cumulative Position



As at March 2009

23 164 606

During the Financial Year 2008-09 banks in Punjab, have launched/established 164 new Farmers’ Clubs as against 23 such Clubs formed during the same period last year i.e. 2007-08.


Item No. 12 National Horticulture Board – Letters of Intent Issued

The summary of the progress achieved in LOI cases of Horticulture Board is as follows;


Year LOI Issued Cases

disbursed

Amount

disbursed

Subsidy

Released

2007-08 123 53 284 85

2008-09 108 33 101 43

The LOI cases pertaining to 2008-09, which were issued during / or after September 2008, have been forwarded to all Lead District Managers for

54

further taking up with the banks & reviewing the progress achieved in the meetings of District Level Consultancy Committee.

The Controlling Heads of Banks are requested to get processed

these cases at the earliest & Lead District Managers are requested to review the same in the district level meetings.

Item No. 13 Advances to Industrial Sector

13.I Credit to Small & Medium Enterprises (SME)

India’s Small & Medium Enterprises (SMEs) manufacture about 8000 products, account for 6% of GDP, 34% of national exports and employ 30

million work force. Financial Assistance

As per the Policy Package announced by Hon’ble Finance Minister,

Government of India, during 2005, the banks are required to double the credit

under SME within next 5 years i.e. up to March 2010. The progress achieved by banks in providing credit to SME in Punjab up to March 2009 is

summarized below:


Small Enterprises

Direct Finance Indirect Finance

Medium Enterprises

Total

Manufacturing Services

A= ( i+ii+iii) ( i ) ( ii ) ( iii ) B C = (A+B)

No. Amt. No. Amt. No. Amt. No. Amt. No. Amt. No. Amt.

172134 (167594)

14439 (11305)

77649 (79269)

10451 (8516)

94265 (87151)

3969 (2749)

220 (1174)

19 (40)

4026 (3548)

4227 (4057)

176160 (171142)

18667 (15362)

(Bank-wise performance is as per Annexure XXVIII).

Observation

In the State of Punjab, the total advances to SME sector as at March 2005 were Rs. 6448 crore, which have now reached the level of Rs. 18667 crore, thus showing a growth of 189.5%, whereas as per the

Policy Package of Hon’ble Finance Minister, Government of India announced in 2005 these were required to be doubled in 5 years i.e. March 2010.

Up to March 2009, banks have provided financial assistance to 176160 SME units amounting to Rs. 18667 crore.

55

Out of which, the assistance provided to Small Enterprises is Rs. 14439 crore to 172134 units.

Banks have provided assistance to the tune of Rs. 4227 crore to 4026 medium enterprises.

Financing of New Units

As per the policy package announced by Hon’ble Finance Minister, each Urban & Semi Urban bank branch is to provide financial assistance to atleast 5 new units under Tiny, Small & Medium industry in a year.

The position of financing of New Units up to March 2009 is given below:


Institution Number of

U/SU Branches

New SME Units Financed Per Branch

New SME Accounts

Opened

Number Amount

Commercial Banks

1961 16802 3089.74 8.57

RRBs 36 2248 10.32 62.44

Total 1997 19050 3100.06 9.54 (Bank-wise performance is as per Annexure XXIX).

Observations

During the financial year 2008-09, 1997 Urban/ Semi Urban branches of

banking system in Punjab have financed 19050 new accounts under SME sector.

The per branch new SME account comes to 9.54 as against

target of 5.

The performance is satisfactory.

13.II Performance of Specialized SME Branches

The progress achieved by 64 Specialized SME branches of various banks

in State of Punjab up to March 2009 is summarized below:

56

(Amt. Rs. in crore) Sr.

No.

Particulars Cumulative up

to the previous quarter ended Dec. 08

During the

current quarter

Cumulative up

to the current quarter ended March 09

a) No. of loans sanctioned 22825 1762 24587

b) Amt. Sanctioned 3551.05 688.74 4239.76

c) Amt. Disbursed 3019.60 669.94 3689.54

d) Amt. Outstanding 1917.55 - 2047.37

e) Proposal in hand:

Number 207 - 158

Amount 221.64 - 95.41 (Bank-wise progress is given as per Annexure-XXX).

Observations

During the quarter ended March 2009, Specialized SME branches

sanctioned loans of the order of Rs. 688.74 crore to 1762 SSI units and

disbursement has been made to the tune of Rs. 669.94 crore.

Up to March 2009, Specialized SME branches of different banks in the

State of Punjab have sanctioned loans to the tune of Rs. 4239.76 crore to 24587 SME units and disbursement has been made to the extent of Rs. 2047.37 crore.

As at 31.03.2009, as many as 158 loan proposals amounting to Rs. 95.41 crore are in hand with the Specialized SSI/SME branches, which

should be got disposed of at the earliest.

The House may review the performance.

13.III Credit Guarantee Fund Scheme for Micro & Small Enterprises

The comparative position of coverage under the scheme is as follows:

(Amount Rs. in lakh)

Coverage 2007-08 Up to March 08

Coverage 2008-09 up to March 09

Cumulative Progress Up to March 09

Accounts Accounts Accounts Amount Accounts Amount

630 2656 1137 6001 2944 11736 (Bank-wise performance is as per Annexure XXXI).

57

Observations

The banks, up to March 2009, have assisted 2906 SSI units amounting to Rs. 11468 lakh under the Credit Guarantee Fund Scheme for Small

Industries of SIDBI. During financial year 2008-09, banks have covered 1099 cases under

the scheme amounting to Rs. 5733 lakh, thus registering growth of 74.4% in terms of cases covered & 115.85% in terms of amount of

loans involved during last year.

The house may review the performance.

SUB GROUP OF SLBC (PUNJAB) ON CGTMSE

During the Special Meeting of SLBC on MSE held at Amritsar on 12.01.2009, Madam Usha Thorat, Deputy Governor, RBI, Chief Guest of the

meeting, observed that the coverage of MSE accounts under CGTMSE is not picking up and therefore suggested to constitute a Sub-Group of SLBC for ascertaining the reasons of low coverage under the scheme.

Accordingly a Sub Group of SLBC was constituted and meeting of the

same was held on 5th March 2009 consisting of;

Reserve Bank of India,

SIDBI,

CGFTMSE, Punjab National Bank,

State Bank of India,

State Bank of Patiala, Oriental Bank of Commerce,

Punjab & Sind Bank, UCO Bank,

Chamber of Industrial & Commercial Undertakings, Ludhiana,

Textile Manufacturing Association, Amritsar, Department of Industries, Government of Punjab &

Directorate of Institutional Finance & Banking, Government of Punjab.

The issue of slow progress under the scheme and

strategies/suggestions to enhance the progress was discussed in details and

the brief of the same is given below;

58

The reasons of low progress of CGTMSE as follows:

1. The prospective borrower is reluctant to give guarantee fee of 1.5% and annual service of 0.75% and instead he prefers to give collateral

security to the bank. 2. Wherever, the prospective borrower has land for the factory and needs

loan for construction of building along with working capital, he is also

reluctant to get coverage under the scheme as bank has already taken security (primary) from him in the shape of factory land & building.

3. In case of working capital facility, after 5 years, the borrower has to

give again the guarantee fee as per applicable rate, which however, runs concurrent to the currency of the Term Loan.

4. The concerned bank official is also hesitate to cover the cases under the scheme and prefers to take collateral security.

Strategies for enhancing the coverage under CGTMSE.

1. Sensitization of the field staff by incorporating the importance of the

scheme in training module and organizing workshops/seminars. 2. Due publicity of the scheme may be done for creating awareness

amongst the bank officials and the prospective borrowers. 3. Banks may devise some means like taking permission from controlling

Authority in case of sanctioning credit facility say upto Rs. 10 lakh

without coverage under CGTMSE. 4. Similarly, the banks may explore feasibility of sanctioning of loans upto

Rs. 10 lakh under Rule Based Lending Model. (This will bring more objective in appraisal of the proposal).

5. The guarantee fee & annual charges for loans upto Rs. 5 lakh for

industry and Rs. 2 lakh for services may be borne by banks. 6. The benefit of low guarantee fee and annual fee as applicable to North

East / Hilly areas be also extended to Punjab being border area State.

7. The guarantee cover under the scheme may be revised as per the following suggested slabs

Credit Facility %age of Guarantee Cover

Up to Rs. 5 lakh 90%

Above Rs. 5 lakh and upto Rs. 25 lakh 85%

Above Rs. 25 lakh and upto Rs. 50 lakh 80%

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8. For coverage of credit facility under PMEGP, the guarantee fee and annual charges should be borne by banks.

9. Banks may explore feasibility of covering existing working capital facilities under the scheme at the time of annual review/renewals.

10. The annual service fee should be charged as per the outstanding balance in the loan account.

The Convener Bank vide letter dated 18.03.2009 has circulated the minutes of the above meeting to all members.

During the last meeting of SLBC the house approved the recommendations. The Convener bank has forwarded these to

Reserve Bank of India for their further necessary action.

Item No. 14 Recovery of Banks' Dues

14.I. A) Recovery Under Key Sector of Priority Sector The comparative position of sector wise recovery of Priority Sector as at

March 2009 is given below;

Sector %age Recovery Variation March

08/07

Variation March

09/08 March 07 March 08 March 09

Agriculture 89.76 90.63 86.22 +0.87 PPs -4.41 PPs

MSE 81.79 78.76 84.05 -3.03 PPs +5.29 PPs

Others PS 86.38 83.38 83.16 -3.00 PPs -0.22 PPs

Total PS 87.42 87.74 85.54 +0.32 PPs -2.20 PPs

The sector wise demand / recovery & %age recovery as at March 2009

is as follows:- (Amount Rs. in crore)

Sector Demand Recovery %age Recovery

Agriculture 10816.23 9325.34 86.22

MSE 2301.88 1934.69 84.05

Others PS 1637.37 1361.58 83.16

Total PS 14755.48 12621.61 85.54

(Bank-wise recovery position is as per Annexure XXXII).

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Observations

The overall recovery of PS Advances as at March 2009 is 85.54% as

against 87.74% as at March 2008, thus showing a decline of 2.20 PPs.

The recovery under agriculture has shown decline of 4.41 PPs from

90.63% as at March 2008 to 86.22% as at March 2009. The feedback available reveals that recovery under agriculture has gone down on

account of impact of implementation of Agriculture Rural Debt Waiver & Debt Relief Scheme 2008.

The recovery under MSE sector has shown improvement of 5.29 PPs from 78.76% as at March 2008 to 84.05% as at March 2009.

Whereas, the recovery under Others PS has witnessed marginal decline of 0.22 PPs from 83.38% as at March 2008 to 83.16% as at March

2009.

The House may review the recovery under key sectors of Priority Sector.

14.I B) Recovery Under Government Sponsored Programmes

The comparative position of sector wise recovery of Priority Sector as at

March 2009 is as follows:-

Sector %age Recovery Variation

March 08/07

Variation

March 09/08

March 07 March 08 March 09

IRDP/SGSY 61.44 58.64 65.15 -2.80 PPs +6.51 PPs

PMRY 64.96 59.74 60.82 -5.22 PPs +1.08 PPs

SJSRY 59.73 59.07 59.38 -0.66 PPs +0.31 PPs

The sector wise demand / recovery & %age recovery as at March 2009

is as follows:- (Amount Rs. in crore)

Sector Demand Recovery %age Recovery

IRDP/SGSY 36.88 24.03 65.15

PMRY 118.16 71.87 60.82

SJSRY 6.81 4.04 59.38

(Bank-wise recovery position is as per Annexure XXXIII).

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Observations

The recovery as at March 2009 under IRDP/SGSY, PMRY & SJSRY has

shown improvement over the previous year.

However, these figures also include the recovery through compromise

cases and cash recovery under all these schemes may be further less.

The House may review the recovery under Government sponsored schemes.

14.II Pending Recovery Certificates under State Recovery

Acts

The position as at March 2009 of pending Recovery Certificates filed

under State Recovery Acts is given below:-

(Amt. Rs. in lac)

S. No. Particulars No. of RCs Amount

i) Cases settled during the quarter

169 125.72

ii) Total pending cases 1905 1768.77

iii) Out of (i) above, cases pending for less than six months

130 341.95

iv) Out of (i) above, cases pending for more than six

months but less than one year.

69 83.85

v) Out of (i) above, cases

pending for more than 1 year.

1706 1342.97

(District-wise position is as per Annexure XXXIV).

Observations

As many as 1905 cases filed under State Recovery Acts involving a sum

of Rs. 1768.77 lakh are lying pending with Recovery Officers. Out of which 1706 RCs with amount outstanding to the tune of Rs.

1342.97 lac are pending for more than 1 year. The pendency in respect

of RCs for more than One year is mainly in respect of Amritsar, Bathinda, Faridkot, Ferozepur, Ludhiana, and Ropar Districts.

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Designating Recovery Officer & Implementation of BRISC

The Principal Secretary to Government of Punjab, Department of Finance vide notifications No.III/13A/84/IF/I/226 & 227 dated 27th January

2009 has conveyed the decision of levy collection charges at the rate of five percent of amount recovered for the cases filed by banks with District Revenue Officers under Punjab Public Moneys (Recovery of

Dues) Act 1983 and Punjab Agriculture Credit Operation and Miscellaneous Provisions (Bank) Act 1978 in lieu of the service rendered by the State Government in recovering the dues.

The Convener Bank requested all Lead District Managers to evolve a

mechanism in consultation with the district authorities for affecting the recovery under the new system and its monitoring at district level meetings. We have received the feedback from some of the Lead District Managers and

they have adopted the following system;

The District Coordinators of bank will lodge the Recovery

certificates pertaining to his bank to District Revenue Officer,

The details of this would also be provided to LDM, The District Revenue Officer will mark these Recovery

Certificates to the concerned district level official i.e. SDM/ Tehsildar for affecting recovery,

The progress achieved would be reviewed in monthly Revenue meetings as well as in meetings of DCC/DLRC.

The Lead District Managers are requested to make use of the

BRISC for effecting recovery under the Recovery Certificates filed

under these Acts.

Item No. 15 Housing Finance (Direct Loans)

The comparative position is given below:

As At Amount O/S Increase

Absolute %age

March 2007 5605.81 - -

March 2008 6108.21 502.40 8.9

March 2009 6834.56 726.35 11.9 (Bank-wise performance is as per Annexure-XXXV).

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Observations

The outstanding advances under Direct Housing Finance Scheme has increased by 726.35 crore, from Rs. 6108.21 crore as at March 2008 to

Rs. 6834.56 crore as at March 2009, thus showing a growth of 11.9% as against an increase of Rs. 502.40 crore or 8.9% during the same

period last year. During half year ended March 2009, banks in the State have granted

loans to 13416 beneficairies amounting to Rs. 613.95 crore under Direct Housing Loan Scheme.

The House may review the progress. Item No. 16 Provision of Adequate Exchange Facilities in Border

Area

Reserve Bank of India, Chandigarh vide letter number RPCD.CHD.3479 /04.24.18/ 2008-09 dated June 3, 2009 has desired to assess interest of Scheduled Commercial Banks (SCBs) in providing exchange facilities in border

areas like (Attari/ Wagah) in district Amritsar. Further, if any SCBs are already providing these facilities then these may also be taken into account while

drawing up the projections for demand for such facilities. The Convener Bank accordingly has taken the necessary feedback from the Lead District Manager, Amritsar and conveyed vide letter dated 4th June 2009 to RBI that SBI has

one Extension Counter at Attari, which provides the exchange facility predominantly in four currencies namely PKR, POUND, EURO & US$ between 9 a.m. to 4 p.m daily at Attari & Wagah border.

The detail of the exchange facilities provided at the Extension Counter

is as under; Currency Place During 2008-09 During April 2009 During May 2009

Purchase Sale Purchase Sale Purchase Sale

PKR (in

Lakh)

Attari 321.81 292.12 13.20 14.13 15.16 11.01

Wagha 7.38 10.55 0.36 0.81 0.38 2.44

POUND Attari 0 0 20 60 0 0

Wagha 4300 80 0 0 0 0

EURO Attari 0 0 0 0 0 0

Wagha 2550 110 0 0 0 0

US $ Attari 54578 18428 1561 2200 440 890

Wagha 20282 13644 11000 0 320 220

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Reserve Bank of India vide letter dated July 3, 2009 has requested to include the matter in the agenda of 108th meeting of SLBCfor exploring the

possibility of involving other scheduled Commercial Banks for provision of exchange facilities in the bordering area of Pakistan. The Convener Bank has

requested all controlling heads of banks to examine the issue & explore the possibility of provision of exchange facilities in the bordering area of Pakistan.

The House may deliberate on the issue.

Item No. 17 Any Other Issue with the Permission of the Chair

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Item No. 18

Progress achieved in opening of “No Frills” accounts

and issuance of GCC – Punjab State

The progress achieved by banks in opening of “No Frills” accounts and issuance of GCCs up to March 2009 in Punjab State is as follows;


“No Frills” Accounts Opened GCCs Outstanding

Number Amount Number Amount

1003070 35560 31493 7011 (Bank wise progress under No Frill Accounts is as per Annexure XXXVI). (Bank wise progress under issuance of GCCs is as per Annexure XXXVII).

Observations “No Frill” accounts

Banks up to March 2009 have opened 10,03,070 “No Frills” accounts

having balance of Rs. 35560 lakh.

Issuance of GCCs

On cumulative basis, up to March 2009, banks have issued 31493

GCCs amounting to Rs. 7011 lakh.

Analysis of bank wise progress reveals that, during the quarter under review Andhra Bank, BOM, CBI, Corp. Bank, United Bank of India, & all the private sector banks have not issued even a single GCC.

In view of the importance of “Financial Inclusion” the

Controlling Heads of banks are requested to issue instructions to the concerned quarters for bringing the underserved section of the society to the bank’s fold by opening of “No Frill” accounts and/or

issuing of cards under GCC scheme.

Item No. 19 Initiative Taken by Banks - Grant of Overdraft facility to all “No Frills” account holders

With the objective of greater “Financial Inclusion”, Punjab National Bank had taken an initiative in extending facility of overdraft in all “No Frills” accounts.

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The salient features of the Overdraft facility are as follows;

The account may be opened with zero balance,

The overdraft facility ranging from Rs. 100/- to Rs. 2500/- would be allowed on the request of the account holder at the time of opening of the account or subsequently, on a duly attested certificate that similar

facility has not been availed from any other bank branch and undertaking for not availing this facility from any other bank.

This Overdraft would be required to be adjusted at least once in a

quarter, failing which it would be recalled as per bank rules, This facility would be available to only one member of the family,

This facility would attract interest at BPLR.

Further, in order to avoid opening of multiple accounts in different

banks for availing the overdraft facility it was suggested by PNB that SLBC may specify the geographical area limits within which this facility should be made available by different bank branches. The SLBC (Punjab) resolved that

banks may implement the scheme on the basis of the villages /wards allocated for the purpose of 100% Financial Inclusion. Further, it was also

resolved that other banks may also consider to implement the provision of OD facility to “No Frill” account holders.

Annual Policy Statement 2008-09 of RBI

After this, Reserve Bank of India, in its Annual Policy Statement for 2008-09 has also directed that the outstanding in overdrafts up to Rs. 25000/- against “No Frills” accounts in rural &

semi urban areas be classified as “Indirect Finance to Agriculture”. The Convener Bank has requested the controlling heads of banks to

inform about the decision taken by the bank in providing the facility of Overdraft under “No Frill” accounts and the feedback received is given below;

Name of Bank Decision taken in regard to OD facility under “No Frills” accounts

Punjab National Bank Implemented the scheme

Indian Bank Implemented the scheme

Punjab Gramin Bank Implemented the scheme

67

Other banks have yet to inform about the views/ decision taken by them on the issue. It is desired that other banks may also give their views

on the issue so that the scheme of OD facility to “No Frills” account holders is implemented.

The Controlling Heads of other banks are requested to consider

providing OD facility to “No Frills” account holders in the light of the

guidelines of Reserve Bank of India in regard to classification of such OD facilities under “Indirect Agriculture”.

Item No. 20 Kisan Credit Card (KCC) Scheme

The progress achieved by banks in implementing Kisan Credit Card scheme up to 31.03.2009 is given below:-

(Amt. Rs. in crore) Period

Sanctioned Disbursed Outstanding

No. of

KCCs

Amount No. of

KCCs

Amount No. of

KCCs

Amount

Commercial Banks

2006-2007 127378 1922.72 126600 1991.76 125885 1968.40

2007-2008 132795 2740.04 132217 2705.51 130283 2610.29

2008-2009 165774 3717.19 165218 3601.61 164644 3536.68

Since inception up to March 09

1250341 13338.40 1134162 12400.36 652771 9028.58

Cooperative Banks

2008-09 18570 157.57 18111 139.62 18111 139.61

Since inception up to March 09

888594 5446.95 851278 4684.18 716262 3774.94

Total Since Inception

2138935 18785.25 1985440 17084.54 1369033 12803.52

(Bank-wise progress is as per Annexure XXXVIII).

Highlights

Commercial Banks in the State of Punjab have issued 165774 Credit Cards amounting to Rs. 3717.19 crore and disbursement has been

completed in 165218 cases to the extent of Rs. 3601.61 crore from 1st April 2008 to 31st March 2009. In addition to this, Cooperative Banks have sanctioned 18570 Credit Cards amounting to Rs. 157.57 crore &

disbursement has been made in 18111 Kisan Credit Cards amounting to Rs. 139.62 crore.

Since inception of the scheme, Commercial and Cooperative Banks jointly have sanctioned credit cards to 21,38,935 farmers amounting to

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Rs. 18785.25 crore in the State, out of which disbursement has been made to 19,85,440 farmers to the tune of Rs. 17084.54 crore. On

cumulative basis, there are 13,69,033 outstanding KCCs amounting to Rs. 12803.52 crore.

Banks in the State have already confirmed to the State Government that all eligible farmers have been issued KCCs and now fresh KCCs are being

issued to the new farmers becoming eligible due to inheritance of land, fragmentation of land holdings, minor becoming major etc.


Item No. 21 Golden Jubilee Rural Housing Finance Scheme

The progress achieved under the scheme up to 31.03.2009 is given

below: (Amount Rs. in lac)

During quarter ended March 2009 Cumulative up to 31.03.2009

Sanctioned Disbursed Sanctioned Disbursed

No. Amt. No. Amt. No. Amt. No. Amt.

2638 (4940)

8651 (14843)

2668 (4864)

8324 (14532)

9522 (14465)

32593 (41044)

9515 (13898)

29534 (37249)

Figures in brackets denote position as at March 2008. (Bank-wise position is given as per Annexure XXXIX).

Observations:

During the financial year 2008-09, under Golden Jubilee Rural Housing

Scheme, banks in the State of Punjab have sanctioned loans to 9522 beneficiaries amounting to Rs.32593 lac and disbursement has been completed in 9515 cases to the tune of Rs. 29534 lac under the

Scheme.

This is for the information of the members.

Item

No. 22

Implementation of Nayak Committee recommendations

while assessing working capital limits

69

As per Reserve Bank of India guidelines for assessing working capital limits of village, tiny and other SSI units requiring fund based limits up to

Rs.5 crore, banks have to adopt procedure based on Nayak Committee guidelines, i.e. sanction of working capital limits of 20% of the projected

turnover.

The performance data of banks in implementing Nayak Committee

recommendations during the quarter ended March 2009 is given below:

(Amt. Rs. in crore)

Sr. No.

Particulars Previous quarter ended Dec. 08

Current quarter ended March 09

No. Amount No. Amount

a) Loans sanctioned

to SSI

3390 809.44 3999 840.99

b) Out of (a) above, loans sanctioned as

per Nayak Committee Norms.

3238 (95%)

739.55 3801 (95%)

771.66

(Bank-wise performance is as per Annexure XL).

Highlights

During the quarter ended March 2009, banks have sanctioned loans amounting to Rs. 840.99 crore to 3999 SSI units. Out of these, loans amounting to Rs. 771.66 crore have been sanctioned to 3801 SSI units as per

Nayak Committee Norms. It reveals that while assessing the credit requirements of SSI units requiring funds up to Rs.5 crore, Banks have

applied norms based on Nayak Committee recommendations in 95% of cases. The feed back from Banks also indicates that in remaining 5% of units, the borrowers were not willing to avail the credit limits as per Nayak Committee

Recommendations, due to the turnover of current assets being high and/or higher level of creditors.

Item No.23 Government Sponsored Subsidy Schemes under farm & non farm sector

In order to create infrastructure and increase capital formation in

agriculture and SSI, the Government of India has launched various schemes,

wherein the Govt. of India also provides subsidy. NABARD is nodal agency for

70

implementation of all such schemes. The progress up to 31.03.2009 made under different schemes conveyed by NABARD & SIDBI is placed below:-

Capital Investment Subsidy Scheme for Construction/ Renovation/

Modernization of Cold Storage- NABARD

Particulars Punjab

No. of Schemes/Projects 103

Capacity Created (in lac

MT)

3.09

Total Project Cost (Rs. in Lakh) 11506.42

Bank Loan (Rs. in Lakh) 6472.65

Subsidy Released (Rs. in Lakh) 2277.68

Capital Investment Subsidy Scheme for Rural Godown - NABARD

Particulars Punjab


Capacity Created (in lac MT) 27.13




Credit linked Capital Subsidy Scheme for Technology Up gradation of SSI Units – NABARD

Particulars Punjab





Credit linked Capital Subsidy Scheme for Technology Up gradation of SSI Units-SIDBI

Particulars Punjab


Bank Loan (Rs. in Lakh) 4056

Subsidy Released (Rs. in Lakh) 445

71

Capital Investment Subsidy Scheme for Commercial Production

Units of Organic Inputs under National Project on Organic Farming -NABARD

Particulars Punjab




Subsidy Sanctioned (Rs. in Lakh) 69.33

Capital Investment Subsidy Scheme for Development of Agriculture

Marketing Infrastructure - NABARD

Particulars Punjab




Subsidy sanctioned (Rs. in Lakh) 2453.45

Centrally sponsored Water Harvesting Scheme For SC/ST Farmers

Particulars Punjab




Subsidy sanctioned (Rs. in Lakh) 6.42

This is for the information of the members.

Item No. 24 Venture Capital fund for Dairy/Poultry Sector

Government of India has accorded top priority for increasing the food

production. In this context, increasing milk, egg and meat production assumes

importance to meet the needs of growing population in the country. At

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present more than 75% of the milk produced in the country is being handled by the unorganized sector. The qualitative aspects relating to handling need

to be given importance. Small milk producers need to be encouraged to come into organized sector with support to use the latest technology available to

produce the products, which are of high quality. Similarly, in the Poultry sector even though the productivity level is comparable with advanced countries, there are many activities, which can lead to market link up and provide

employment opportunities to rural poor. Government of India have, therefore, announced a scheme for creation

of a fund entitled “Venture Capital for Dairy & poultry” with a view to provide interest free loan/interest subsidy on the bank loan to entrepreneurs for

undertaking certain activities in these two sectors. The progress achieved by banks up to March 2009 is as follows;

Particulars Punjab




Revolving Fund (Rs. in Lakh) 78.02

Only component under dairy sector can now be funded under the revised scheme which was extended till

31.03.2009.

The Controlling Heads of Banks are requested to monitor the

progress under these schemes in view of importance & need of enhancing investment credit under agriculture.

Item No. 25 Small Farmers Agri- Business Consortium (SFAC)

The objective of the scheme is to help/promote investments in agri

business projects that are dependent on agriculture & allied activities and which will lead to increased rural employment, rural income and encourage the farmers to diversify into high value crops.

The latest progress achieved is as follows;

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Target Cases

Received Sanctioned Rejected Under processing

7 10 5 5 -

In 5 sanctioned cases the venture capital assistance involved is Rs. 241

lakh. This is for the information of members.

SLBC

& BANKS COMMITTED TO

TOTAL FINANCIAL INCLUSION IN THE STATE

Documents

108th Meeting of State Level Bankers’ Committee (Punjab) Old Meetings/SLBC Old data/Slbc108... · 3 ADWDRS – Cut off date for payment of first installment by “other farmers”